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Calculate dollar appreciation against the rupiah & franc

1. In the second half of 1997, the Indonesian rupiah devalued by 84% against the U.S. dollar. By how much has the dollar appreciated against the rupiah?

2. On February 1, the French franc is worth $0.1984. By May 1, it has moved to $0.2057. By how much has the franc appreciated or depreciated against the dollar over this 3-month period?

Solution Preview

1. If e0 is the initial dollar value of the rupiah and e1 is the post-devaluation exchange rate, then we know that (e1 ...

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This posting provides the answer to the student's question.

$2.19