Question

Based on the table below answer the following questions.

Wed Wed Chile peso 1 1 1 5.1 -0.07 0.2 Exchange Rates: New York Closing Snapshot Thursday, September 06, 2018 U.S.-dollar foreign-exchange rates in late New York trading IN US$ US$ VS. % CHG PER US$ Country/currency Thurs 1-Day YTD Thurs Americas Argentina peso 0.0267 0.0259 -3.11 101.1 37.4202 38.6203 Brazil real 0.2467 0.2411 -2.27 22.4 4.0534 4.1477 Canada dollar 0.7609 0.7589 -0.27 4.5 1.3142 1.3178 0.001456 0.001458 0.12 11.6 686.9 686.1 Ecuador US dollar 1 unch unch Mexico peso 0.0521 0.0517 -0.82 -2.5 19.1832 19.3423 Uruguay peso 0.03081 0.03081 unch 12.7 32.46 32.46 Venezuela bolivar 0.00000403 2401878.4 248409.0001 Asia-Pacific Australian dollar 0.7198 0.7192 -0.08 8.5 1.3893 1.3904 China yuan 0.1463 0.1464 0.06 6.8352 6.8312 Hong Kong dollar 0.1274 0.1274 0.02 0.5 7.8493 7.8481 India rupee 0.0139 0.01394 0.26 12.6 71.945 71.755 Indonesia rupiah 0.0000672 0.000067 -0.35 10.4 14880 14933 Japan yen 0.00903 0.00897 -0.7 -1.7 110.75 111.53 Kazakhstan tenge 0.00267 0.00269 0.7 12.4 373.84 371.25 Macau pataca 0.1236965 0.123692 0.5 8.084 8.085 Malaysia ringgit 0.2416 0.2408 -0.32 1.9 4.1398 4.153 New Zealand dollar 0.6589 0.6591 0.03 7.6 1.5177 1.5172 Pakistan rupee 0.00812 0.00812 -0.01 11.3 123.11 123.12 Philippines peso 0.0185 0.0186 0.6 8 53.981 53.661 Singapore dollar 0.7276 0.7271 2.8 1.3744 1.3754 South Korea won 0.0008912 0.000893 5.1 1122.06 1119.85 Sri Lanka rupee 0.0061877 0.0061648 -0.37 5.3 161.61 162.21 Taiwan dollar 0.03248 0.03249 0.01 3.8 30.79 30.78 Thailand baht 0.0305 0.03051 0.03 0.6 32.79 32.78 Vietnam dong 0.00004289 0.00004289 2.7 23315 23314 Europe Bulgaria lev 0.59432 0.59467 0.06 3.2 1.683 1.682 Croatia kuna 0.1563 0.1565 0.11 3.3 6.3967 6.3895 Czech Rep. koruna 0.0452 0.04519 -0.01 4 22.126 22.129 Denmark krone 0.1559 0.156 0.07 3.4 6.415 6.4103 Euro area euro 1.1624 1.163 0.05 3.3 0.8603 0.8599 Hungary forint 0.00356595 0.00355139 -0.41 8.3 280.43 281.58 Iceland Krona 0.009025 0.009143 1.31 7 110.8 109.37 Norway Krone 0.1187 0.1191 0.3 2.6 8.4219 8.3967 Poland Zloty 0.2689 0.2689 6.9 3.7193 3.7193 Romania leu 0.2506 0.2509 0.14 3.9906 3.9851 Russia ruble 0.01444 0.01466 1.52 20.1 69.248 68.213 Sweden krona 0.1098 0.1104 0.57 11.3 9.1073 9.0658 Switzerland franc 1.0361 1.0292 -0.66 -0.9 0.9652 0.9716 Turkey lira 0.1519 0.1515 -0.3 73.4 6.5816 6.6017 Ukraine hryvnia 0.0354 0.0352 -0.6 0.3 28.237 28.407 U.K. pound 1.2928 1.2906 -0.17 4.5 0.7735 0.7748 Middle East/Africa Bahrain dinar 2.6522 2.6522 unch -0.01 0.3771 0.3771 Egypt Pound 0.0559 0.0558 -0.13 0.7 17.8895 17.9135 Israel shekel 0.2786 0.2778 -0.26 3.2 3.59 3.5994 Kuwait dinar 3.3021 3.3001 -0.06 0.5 0.3028 0.303 Oman sul rial 2.59744 2.5973 -0.01 0.01 0.38 0.39 Qatar rial 0.2746 0.2748 0.09 -0.2 3.6421 3.6388 Saudia Arabia riyal 0.2666 0.2666 -0.01 0.01 3.7509 3.7511 South Africa rand 0.0652 0.0648 -0.58 24 15.3332 15.4227 Source: Tullett Prebon 27

1. What are £25,000 (GBP) worth in US dollars?
2. What are ¥10,000 Japanese yen worth in terms of euros? (Use only figures in the table provided to reach your answer.)
3. In the table, has the Canadian dollar gained or lost value from Wednesday to Thursday, and how can you tell?
4. Suppose the US dollar gains 10% in value against other currencies? Will this help or hinder US exports, and why? (Answer in one sentence.)

Answer 1

The "per US $" column defines the amount of each currency one would get for 1 US$.

The "IN US $" column defines the amount of US dollars one would get for eacg unit of foreign currency

What are £25,000 (GBP) worth in US dollars?

Under the "In US $" column, 1 GBP = 1.2928$

So, £25,000 (GBP) = 25,000 x 1.2928$ = $32,450

What are ¥10,000 Japanese yen worth in terms of euros?

Under the "In US $" column, 1 Yen = 0.00903

So, 10,000 yen = 10,000 x 0.00903 = $90.30

Under the "per US $" column 1 $ = 0.8603 euros

So, 90.30 dollars = 90.03 x 0.8603 = 77.69 euros

In the table, has the Canadian dollar gained or lost value from Wednesday to Thursday, and how can you tell?

The Canadian dollar has gained

On Wednesday under the "per US $" column 1$ was = 1.3178 Canadian dollar

On Thursday under the "per US $" column 1$ is = 1.3142 Canadian dollar

Since 1 US$ can buy less Canadian dollars on Thursday compared to Wednesday, Canadian dollar has gained.

Suppose the US dollar gains 10% in value against other currencies? Will this help or hinder US exports, and why?

US exports are payable by the importers in US dollars, if the US $ gains 10%, the importers will need more local currency to buy US $ compared to before. This will hinder exports as importers will be unwilling to pay such rise in currency.