Explore BrainMass

Euro vs. Dollar

Explain the exchange rate determination between euro and dollar.
Determine money supply between euro and dollar
Explain in context appreciation and depreciation for euro and dollar
Show graphically.

Solution Preview

The response addresses the queries posted in 531 words with references.

// In this paragraph, we will discuss the factors that determine the exchange rate between euro and dollar. There will be emphasis on the impact of dollar on euro value at international level trade.//

The exchange rate between two currencies shows their value against each other for business and non business transactions. It also shows the purchasing power of one currency in comparison to other currency. The euro currency is stronger than the dollar because of its favorable determinants that make it stronger then other currencies. The dollar value is reduced currently that indicates appreciation in euro value. The exchange rate of euro and dollar increased over the period due to several reasons.

The main determinant of exchange is of interest rate because it provides the means of increase in the value of money in their respective countries. Higher the interest rate ...

Solution Summary

314 words, APA