On June 13th, Sandy Corp. (based in the U.S.) purchased goods for 70,000 euro at an exchange of $1.3 per euro. One month later, when the transaction was settled, Sandy booked a loss of $7,000.

Which of the following statements is correct regarding the exchange rate from June 13th to July 13th?

1. The euro appreciated to $1.2 per euro.
2. The euro depreciated to $1.2 per euro.
3. The euro appreciated to $1.4 per euro.
4. The euro depreciated to $1.4 per euro.