Dollar versus the Euro
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· On Friday, the New York foreign currency market closed with a quote of $1.0900 / Euro. To stimulate economic activity the Federal Reserve hints that interest rates will be lowered by 50 basis points (½ of 1%). At the close of business on Monday, reacting to speculation that the Fed will lower interest rates, the New York currency market closed with a quote of 1.1250 $ / Euro. Has the US dollar ($) appreciated or depreciated against the Euro? How can you explain your answer?
· Given the following exchange rates: $US 1.6022 / £ and ¥ 121.95 / $US, how many Japanese yen (¥) are needed to purchase 1 pound sterling (£)?
· For each of the following direct foreign exchange quotes calculate the equivalent
Indirect quote (round off your answer using four decimal places):
â?¬ 0.00776 / Yen
$0.2723 / Dirham
$0.0212 / Rupee
$1.6037 / British Pound
â?¬ 1.4614 / British Pound
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as the US dollar ($) appreciated or depreciated against the Euro? How can you explain your answer?
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· On Friday, the New York foreign currency market closed with a quote of $1.0900 / Euro. To stimulate economic activity the Federal Reserve hints that interest rates will be lowered by 50 basis points (½ of 1%). At the close of business on Monday, reacting to speculation that the Fed will lower interest rates, the New York currency market closed with a quote of 1.1250 $ / Euro. Has the US ...
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