The table below contains economic, financial, and business indicators from 2015: Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Unemployment Gross Domestic Product Production Rate Forecast Forecast Country Latest Qtr Qtr 2015e 2016e Recent Qtr Latest Australia 4.4 % 4.1 % 4.3 % 3.9 % 4.7 % 4.1 % 1.7 % -1.4 % 2.4 % 1.7 % 4.2 % 3.7 % Japan United States 2.4 % 4.1 % 2.4 % 2.9 % 1.6 % 4.8 % Consumer Prices Interest Rates Forecast 3-month 1-yr Govt Country Year Ago Latest 2015e Latest Latest Australia 4.6 % 2.6 % 2.9 % 6.79 % 6.29 % Japan 0.9 % -0.3 % 0.0 % 0.51 % 1.61 % United States 2.2 % 2.9 % 2.9 % 4.55 % 4.53 % Trade Balance Current Account Current Units (per US$) Last 12 mos Last 12 mos Forecast 15 Country (billion $) (billion $) (% of GDP) Oct 17th Year Ago Australia -12.6 -46.1 -5.7 % 1.13 1.39 Japan 98.1 197.2 4.4 % 115.00 119.00 United States -810.3 -793.5 -5.7 % 1.00 1.00 Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts. Forward Rates. Use the table containing economic, financial, and business indicators to answer the following questions. Using the spot rates and 3-month interest rates, calculate the 90-day forward rates for: a. Japanese yen /U.S dollar exchange rate b. Japanese yen Australian dollar exchange rate c. Australian dollar/U.S. dollar exchange rate The table below contains economic, financial, and business indicators from 2015: Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States Industrial Unemployment Gross Domestic Product Production Rate Forecast Forecast Country Latest Qtr Qtr 2015e 2016e Recent Qtr Latest Australia 4.4 % 4.1 % 4.3 % 3.9 % 4.7 % 4.1 % 1.7 % -1.4 % 2.4 % 1.7 % 4.2 % 3.7 % Japan United States 2.4 % 4.1 % 2.4 % 2.9 % 1.6 % 4.8 % Consumer Prices Interest Rates Forecast 3-month 1-yr Govt Country Year Ago Latest 2015e Latest Latest Australia 4.6 % 2.6 % 2.9 % 6.79 % 6.29 % Japan 0.9 % -0.3 % 0.0 % 0.51 % 1.61 % United States 2.2 % 2.9 % 2.9 % 4.55 % 4.53 % Trade Balance Current Account Current Units (per US$) Last 12 mos Last 12 mos Forecast 15 Country (billion $) (billion $) (% of GDP) Oct 17th Year Ago Australia -12.6 -46.1 -5.7 % 1.13 1.39 Japan 98.1 197.2 4.4 % 115.00 119.00 United States -810.3 -793.5 -5.7 % 1.00 1.00 Note: Unless otherwise noted, percentages are percentage changes over one year. Rec Qtr = recent quarter. Values for 2015e are estimates or forecasts. Forward Rates. Use the table containing economic, financial, and business indicators to answer the following questions. Using the spot rates and 3-month interest rates, calculate the 90-day forward rates for: a. Japanese yen /U.S dollar exchange rate b. Japanese yen Australian dollar exchange rate c. Australian dollar/U.S. dollar exchange rate
