Note that question 4 refers only to exchange rates which are part of the Australian TWI basket of currencies and for the period 16/03/2020 to 26/05/2021. Your boss does not ask for further clarifications and therefore is part of your assignment to answer without further clarification. He only mentions that the daily data is freely available data from the RBA for you to do the work (and he is right about it!!!).

4) Your boss at Energy Power observed that “Since the start of the Covid-19 pandemic different forces have affected the Australian TWI. In particular, from 16/03/2020 to 26/05/2021 the TWI increase from 54.10 to 64.10.” Therefore he wants to understand more about the impact of the covid 19 pandemic on the Australian exchange rate to evaluate future exports markets and therefore he asks you the following questions/estimations to do:

QUESTION:

Calculated the contribution of each of the following bilateral exchange rates (against the Australian dollar) which have contributed to the increase of Australian TWI during this period: Chinese renminbi, Japanese yen, the US dollar. Please show the calculation and figures and explain your results.