When the direct rate in the United States for the euro is USD 0.9568 per EUR, the reciprocal rate is:

Q: The following are the prices in the foreign exchange market between the U.S. dollar and another…

A: Given: Spot rate =$0.03112/LC3 month forward =$0.03117/LC

Q: The exchange rate between the British pound and the Australian dollar (GBP/AUD) is 0.4220, it means…

A: Exchange rate between the British pound and the Australian dollar (GBP/AUD) is 0.4220

Q: If the exchange rate for Canadian and U.S. dollars is 0.92777 to 1, this implies that 13 Canadian…

A: Value of 1 Canadian dollar in US dollar = 1/0.92777 = 1.07785334727

Q: Suppose the U.S.-dollar-per-currency exchange rate of the euro was 0.8836 an Thursday and 0.8828 on…

A: Since  you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume that Canadian (domestic) interest rate is 6%. EU (foreign) interest rate is 3%. and the…

A: Concept. Interest rate parity theory defines relationship between interest rates and exchange rates…

Q: The one-year interest rate is 1.00% in the U.S. and 3.10% in Canada. The current exchange rate of…

A: Using 1 USA = CAD 1.37

Q: Compute the Indirect and Direct Quotations of the following Exchange Rates.   Swedish Krona = ?

A: Here,

Q: euro

A: Foreign exchange rate can be defined as an exchange rate in which one currency can be exchanged…

Q: The current exchange rate is $1.19 / Euro. The expected inflation rate for the next year in the U.S.…

A: Current Exchange Rate (Spot Rate) =$1.19 / Euro Inflation Rate in US = 0.62% Inflation Rate in…

Q: If it takes 1.25 euros to buy 1 US dollar, the direct quote for the exchange rate in Europe is: A.…

A: direct quotes states what amount of domestic currency required to buy one unit of foreign currency.

Q: In April 2018, the exchange rate between the U.S. Dollar and the euro is 1 euro = $ 1.21. If in the…

A: Compared to the US the inflation is lower in the euro it shows that  the interest rate is greater in…

Q: Suppose the exchange rate between the U.S. dollar and the Swedish kronawas 7.97 krona =$1, and the…

A: Exchange rate is the rate at which one currency of a country is exchanged with currency of another…

Q: The TRY (Turkish lira) against USD spot exchange rate is TRY1.79620= 1 USD and 4 month’s forward…

A: In finance, forward rates are used to hedge currency or interest rate exposures by organizations and…

Q: If spot rate is USD 2.5968/OMR and interst rate for OMR is 5% per annum . One year forward exchange…

A: If interest rate parity exists than exchange rate should reflect change in interest rate and must be…

Q: Cross rates. Fill in the missing cross rates and direct rates in the following table. International…

A: The currency exchange rate is fluctuating by the import and export of the business and the…

Q: In February 2022 the €/$ (euro/dollar) exchange rate was 0.88€/$. In France, a country that uses…

A: 1 $ = 0.88 € 25$ = 25*0.88 = 22€   Same goods can be bought using the given e

Q: The exchange rates for USD against CNY (Chinese Yuan) and OMR are as follows:…

A: The cross rate refers to the exchange rate between two currencies, each of which has an exchange…

Q: The interest rate in the United States is 4% and the exchange rate is $1 = €0.92, the euro is…

A: Interest rate parity refers to the theory which tells us that the interest rates differential or…

Q: The $/euro spot bid-ask rates are $1.0711-$1.0716. The 6-month forward points are 182-170. Determine…

A: Forward points are measured as the given points multiplied by (1/10,000), and added to the spot…

Q: You are provided with the following exchange rate quotations: American Terms Bank quotations British…

A: Bid on (€/£) = 1/ Ask ($/€) Ask ($/€) = $1.4742 Bid ($/£) = $1.9712

Q: In February 2022 the €/$ (euro/dollar) exchange rate was 0 88€/$ In France, a country that uses…

A: The exchange rate is too low. The dollar should appreciate to ensure that the purchasing power…

Q: An exchange rate is the price of one country's currency expressed in another country's currency. The…

A: a) Indirect quote is where  the cost of one unit of local currency is given in units of foreign…

Q: On January 31, 2019 the exchange rate between the US dollar and the euro was 1.14 USD/EUR. At the…

A:

Q: If the spot rate is NZ$0.50/$ and the forward rate is NZ$0.55/S. The spot exchange rate and the…

A: Given:Spot rate=NZ$0.50Forward rate=NZ$0.55/8Spot exchange rate=C$1.03/$Forward rate=C$1.07/$To…

Q: If the spot rate is NZ$0.50/$ and the forward rate is NZ$0.55/S. The spot exchange rate and the…

A: Given, spot rate = NZ$0.50/$ Forward rate = NZ$0.55/$ Spot rate    = C$1.03/$ Forward rate =…

Q: A product sells for $750 in the United States. The spot exchange rate is $1 to 1.56 Swiss francs. If…

A: The spot rate is referred as the rate of a foreign exchange contract where the delivery is immediate…

Q: The exchange rate for the US and Canada is currently quoted at 0.993 - 0.995 $/Cdn $. The exchange…

A: Triangular Arbitrage occurs when there is a discrepancy in three foreign currencies. The…

Q: he following spot FX rates were reported:   Japanese Yen British Pound Australian Dollar US Dollar…

A: Japanese Yen British Pound Australian Dollar US Dollar 0.010267 1.616500 0.957900 The…

Q: FinnCo purchases goods from its Mexican supplier on 1 November 20X1; the purchaseprice is 100,000…

A: Step 1 The difference due to foreign exchange will be recognized on profit and loss account as a…

Q: If $1.68 equals to a pound and $1.39 equal to an Euro, what is cross rate between pound and euro…

A: Given: 1Pound = $1.68 1 euro = $1.39 Cross rate is common currency between two currencies, for the…

Q: When exchange rates are quoted as the number of U.S. dollars per unit of foreign currency, it is…

A: Under American term, the number of US Dollar represents the quotation of exchange rate of foreign…

Q: In the spot market $1 = 5 Euro, 1 Euro = 25 Canadian Dollar, and 1 Canadian Dollar = 0.75 Japanese…

A: The exchange rate between the U.S. dollar and the Japanese yen = Euro / $ * Canadian Dollar/ Euro *…

Q: The 90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. The…

A: Spot rate 1 Euro = $1.05 Forward rate 1 Euro = $1.07 Period = 90 days

Q: scanner sells for $65.45 in the United States. The exchange rate between the U.S. dollar and the…

A:

Q: British pound (£) $1.8250 / pound Euro (€ ) $1.5110 / euro Australian dollar (AU$) $0.8220 /…

A:

Q: newspaper provides spot exchange rate of $1 = £.7555 and 1-year forward rate of $1=£.7755. You’ll…

A: In this we need to find out cross exchange rate between two currencies.

Q: On January 1, 2021, Euro and USD exchange rate was 1.23 USD/EUR. Today, the Euro exchange rate is…

A: A rate through which individuals or companies convert their domestic currency with the other…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.