Exchange Rate Notes Class Notes Exchange rate can be expressed in two ways‚ for example: £1 = 1.52 CHF 1 CHF = £0.66 Foreign Exchange (Forex) Market Many currencies float freely on the free market. However‚ this is a relatively new phenomenon. After the war‚ major currencies were pegged to each other under the Bretton woods agreement. They were backed up by gold reserves to keep them at this level. Prior to the war they were often pegged to the price of Gold. Prior to the Euro (1990s)
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the article that I choose to do my article review on is called Imagining the Dollar Without Its Privilege. This is a very interesting article writing by Eduardo Porter for the New York Times on October 15‚ 2013. This article is all about the uncertainty of the worth of the U.S dollars and what it might mean to our nation and the rest of the world. A very interesting quote from this article made by George Soros is “the dollar is the weakest currency except for all others”. The article addresses concerns
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Paper Presentation On Impact of Recession in American Economy on India By: S.Karunya Abstract: The recession in the US market and the global meltdown termed as Global recession have engulfed complete world economy with a varying degree of recessional impact. World over the impact has diversified and its impact can be observed from the very fact of falling Stock market‚ recession in jobs availability and companies following downsizing
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1. We chose Japanese Yen as are benchmark exchange rate because Japan is part of the G-10 Countries with U.S. and one of the major economies in the world. Japan is also a Key U.S. Business Partner in importing and exporting goods and services. Through our findings we have developed our insight of the Japanese Yen being very volatile to the dollar. In the graph shown below‚ we can conclude that from 1995 till 1999 the Japanese yen was weaker against Dollar. The process has been repeated between the
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1.Demand Supply Rule: The value of rupee follows the simple demand and supply rule of economics. If the demand for the dollar in India is more than its supply‚ dollar appreciates and rupee depreciates 2. 2.Dollar gaining strength against the other currencies: The central banks of Eurozone and Japan are printing excessive money due to which their currency is devalued. Hence‚ making the US dollar stronger against the other currencies including the Indian rupee‚ at least in the short term. 3. 3.Oil
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THE IMPACT OF EXCHANGE RATE FLUCTUATION ON MACROECONOMIC PERFORMANCE IN NIGERIA CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY This study is designed to examine the causes of exchange rate fluctuations and their impact on the Nigerian economy since there is scarcely any country that lives in absolute autarky in this globalised world. The economies of all the countries of the world are linked directly or indirectly through asset or/and goods markets. This linkage is made possible through
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ANALYTICAL STUDY ON INDIAN CURRENCY RUPEE DEPRECIATION AGAINST THE US DOLLAR AND ITS ECONOMIC IMPACT SHELLY SINGHAL* *Maharaja Agrasen Institute of Management and Technology‚ Jagadhri‚ Haryana‚ India. ABSTRACT The Indian rupee is under great stress as overseas investors are paring their exposure to Asia’s third-largest economy amid international uncertainty and mounting worries over the domestic economy. The exchange rate between the Indian Rupee and the US Dollar has gone over the roof
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pee1. Indian currency (INR) has depreciated close to 22% in the last 1 year. In the article we will try to study the concerns of a country facing depreciating currency‚ the factors that led to this depreciation and the measures government can take to stabilize the situation. Most importantly we will see if global economic uncertainty rides over all the other domestic factors to determine strength of a currency especially in developing economies. Why don’t we need a depreciating INR? The persistent
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Linked Exchange Rate system is the root cause of the situation and that the Hong Kong dollar should no longer be linked to the US dollar. The Financial Secretary already stated in his blog on 14 August that the Link continues to be the most appropriate exchange rate arrangement for Hong Kong. I will elaborate further on a few related issues. Many people who advocate un-pegging the Hong Kong dollar from the US dollar claim that the recent downgrade of the sovereign credit rating of the US would
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Class Time on Thursday‚ 7/18 1. | London | New York | Spot Exchange Rate ($/GBP) | 1.3264 | 1.3264 | Interest Rates | 3.900% | 4.500% | Expected Inflation Rates | 0.650% | 1.250% | a. What is the expected rate of inflation in London? iPC - iBC = PC - BC 4.500% - 3.900% =1.250% - BC PC = 0.650% b. Using Uncovered Interest Rate Parity‚ what is the value of the expected spot exchange rate in two years? E(ST) = S0 * [(1+i)/(1+i*)]T E(S2) = 1.3264 * [(1.045)/(1
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