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Exchange rate: pesos and dollar

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Please see below for the solution on a question regarding foreign exchange rates - pesos and dollars in this case. Provide step by step calculations and detailed explanations.

Currently, in the spot market $1 = 106.5 Japanese yen, 1 Japanese yen = 0.0096 euro, and 1 euro = 10.1 Mexican pesos. What is the exchange rate between the U.S. dollar and the Mexican peso?

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Solution Summary

The following posting helps with exchange rate bases on current amounts (between pesos and dollars). This solution is comprised of a detailed explanation of exchange rate as it pertains to cross rate. The solution also shows a step-by-step explanation and calculation of exchange rate between countries, providing students with a clear perspective of the spot market.

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Problem: Currently, in the spot market $1 = 106.5 Japanese yen, 1 Japanese yen = 0.0096 euro, and 1 euro = 10.1 Mexican pesos. What is the exchange rate between the U.S. dollar and the Mexican peso?

See below for your solution. There is also a version in the attachment. ...

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