D18.2 [Exchange rate movements] Go to the Web site of the Federal Reserve Bank o

Question

D18.2 [Exchange rate movements] Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research.stlouisfed.org/fred2) and download the plot the U.S. dollar-euro exchange rate (EXUSEU), the U.S. dollar-yen exchange rate (EXJPUS), and the U.S. dollar Canadian dollar exchange rate (EXCAUS) for the period from 2001 to the present. Answer the following questions.

a. In what year did the euro reach its highest value?

b. During the financial crisis of 2007-2009, did the yen appreciate or depreciate against the dollar? Briefly explain.

c. Against which currency did the U.S. dollar depreciate the most during this period?

Explanation / Answer

a. in the year 2007-08 the EURO reaches its life time high of 1.6 $ per one Euro.

b. during the crisis period, i.e. 2007-09, Yen was appreciated with dollar. it was touch one of its highest value of 88.70 Yens per one US $. uaually the value will be aproximately at 100 yens per one US $.

c. japanes Yen has more value during the crisis period.

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