Task: Factors affecting the foreign exchange market (USD & MYR) 1. You are required to collect data on historical foreign exchange rate for United States Dollar (USD) against the Malaysian Ringgit (MYR) for one year 2. Plot the collected data on a graph showing the daily movements in FX rates (you can plot all data in one chart or use several charts, if the magnitude of the rates varies widely) 3. Identify the significant movement of FX rates during the last year of your data and explain possible reasons for those movements (you are required to cite all your sources) 4. Discuss how those foreign exchange movements have affected the economy in general (you can use any other information such as trade statistics to justify your explanations). 5. Estimate the correlation coefficient for the pair of currency. What can you learn from the estimated correlation coefficients? Explain, how you (assuming that you are a financial controller of a large MNC which having cash flows in all currencies) can use the estimated correlation coefficient to manage the foreign exchange rate exposure. Task: Factors affecting the foreign exchange market (USD & MYR) 1. You are required to collect data on historical foreign exchange rate for United States Dollar (USD) against the Malaysian Ringgit (MYR) for one year 2. Plot the collected data on a graph showing the daily movements in FX rates (you can plot all data in one chart or use several charts, if the magnitude of the rates varies widely) 3. Identify the significant movement of FX rates during the last year of your data and explain possible reasons for those movements (you are required to cite all your sources) 4. Discuss how those foreign exchange movements have affected the economy in general (you can use any other information such as trade statistics to justify your explanations). 5. Estimate the correlation coefficient for the pair of currency. What can you learn from the estimated correlation coefficients? Explain, how you (assuming that you are a financial controller of a large MNC which having cash flows in all currencies) can use the estimated correlation coefficient to manage the foreign exchange rate exposure