Currency Exchange Rates II by Edu Pristine

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About the Lecture

The lecture Currency Exchange Rates II by Edu Pristine is from the course Archiv - Economics. It contains the following chapters:

  • Convert forward quotation
  • Calculate and interpret a forward discount or premium
  • Calculate and interpret the forward rate consistent
  • Exchange rate regimes
  • Impact of exchange rates on countries' international trade and capital flows

Author of lecture Currency Exchange Rates II

 Edu Pristine

Edu Pristine


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Excerpts from the accompanying material

  • ... points basis or in percentage terms into an outright forward quotation ...

  • ... Forward Quotation is difference between the spot and forward exchange rate " Generally, spot or forward rates are quoted upto 4 th decimal point.  Therefore, a quote of +5.67 points for 30 day forward means that the forward rate is 0.000567 more than spot exchange rate.  So, if ...

  • ... forward price of Rs/$ is greater than spot price of Rs/$  Then, Rs is quoted as forward discount  Rs (domestic currency) is more expensive today than future " Forward premium  Assume Rs/$  If forward price of Rs/$ is lesser than spot price of Rs/$  Then, Rs is quoted as ...

  • ... spot exchange rate is 52.34 with 3-month forwa rd rate quoted as +2.14 points. So we can draw the conclusion that: A. Dollar is trading at a ...

  • ... dollar will be higher in terms of rupees 3 months ...