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Multilateral exchange rates

Suppose the US trades only with Canada, the Eurozone, and China, and the shares of trade with them are 40%, 30%, and 30% respectively. If the US dollar exchange rates with these country currencies a year ago were: 1.1/CAD, 1.35/Euro, and 1.65/Yuan respectively, and currently the rates are 0.95/CAD, 1.45/Euro, and 1.7/Yuan. How has the US dollar fared against a basket of currencies represented by its trade partners' currencies?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92306779

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