Question
Part 1: 1) From Bloomberg, download the exchange rates of at least 6 foreign currencies (at least 2 of them have to be from emerging
Part 1:
1) From Bloomberg, download the exchange rates of at least 6 foreign currencies (at least 2 of them have to be from emerging markets) including the US dollar.
(The number of currencies depends on your choice, the more the better)
2) Compute the one-year appreciation or depreciation of each currency against the US dollar year to year within your chosen time window.
(The time window depends on your choice, the longer the better).
($: US dollar, X: The foreign currency that you have chosen)
St(X/$) = Beginning Rate
St+1(X/$) = Ending Rate
The % appreciation (or depreciation) in X can be calculated as;
[(Ending Rate – Beginning Rate) / Beginning Rate] x 100
3) Explore recent exchange rate trends for the pairs of countries that you have selected (the time window depends on your choice, the longer the better). To plot trends, download the series to a spreadsheet.
4) Try to plot examples of some fixed and floating rates. Can you tell from the data, which countries are fixed and which are floating? Please justify and explain your conclusions
5) In the plots, can you locate data for an exchange rate crisis within your time-window?
Step by Step Solution
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Step: 1
Part 1 I have downloaded the exchange rates of 6 foreign currencies including the US dollar for the past 10 years The currencies I have chosen are 1 E...Get Instant Access to Expert-Tailored Solutions
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Step: 2
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