Only if n is an integer. Real exponentiation is something completely different, because it involves all aspects of real numbers - addition, multiplication, order and continuity, which are all interconnected, and the language of group theory is too weak to describe it. For instance, while 2^pi makes perfect sense in the realm of real numbers, it makes none in Z_3.
(Warning, ascii math is confusing and ambiguous to read. Sorr.)
Exponentiation of group "multiplication" does not immediately seem amenable to the reals, sure. But real exponentation does form a group, as shown here:
Define x_g(r) = the function that raises a Real/{0} (non-zero real) number r to the exponent x (in the sense of of some reasonable definition of exponentiaton of continuous functions). Define X = the set x_g() functions corresponding to all reals (including 0)
Define x_g y_g as composition: y_g(x_g(r)) = (r^x)^y = r^ (xy).
Then we have 0_g x_g = (r^0)^y = r ^ (0 y) = 1 = r ^ (y * 0) = (r^y)^0) = y_g 0_g -> identity
The group you described does not inherit any interesting structure from exponentiation -- indeed, one can easily see that it is isomorphic to the multiplicative group of reals. You could similarly construct a group isomorphic to an additive group of reals. This is an example of the fact that real exponentiation connects different aspects of real numbers, as well as the fact that just abstract algebra language is not enough to express properties of real numbers. You need to somehow relate the algebraic structure of reals to a topologic one, which stems from order imposed on reals and its continuity.