Since early 2022, we have been witnessing a weakness of the euro against the dollar whilst both the Federal Reserve Bank and the European Central Bank have been raising their respective target interest rates. Assess the extent to which this depreciation of the euro against the dollar can be explained by differences in the policy actions of these two central banks. Your analysis should explain why these central banks have been increasing their interest rates and how the Fisher effect and Purchasing Power Parity are connected to this type of monetary policy action. Your discussion should include theoretical background and diagrammatic explanation and should connect theory with reality