Intercontinental Finance

 International Finance Essay

п»їCh: 4-Exchange rate movement recently

AUD per USD

BDT per USD

Month

Price

% modify

Rate

% change

Sep-13

0. 9303

76. 3765

Oct-13

zero. 9519

0. 023218317

seventy six. 2753

-0. 00132501

Nov-13

0. 9324

-0. 020485345

76. 4057

0. 001709597

source: forex rate, (dec 2, 2013)

The above foreign currencies are showed in the indirect quotations demonstrates the average prices of exchange rate. The Bangladeshi taka and Aussie dollar will be here showed against the ALL OF US dollar to measure the money appreciation or depreciation of USD resistant to the foreign currency. Inside the month of November we can see that to get 1 UNITED STATES DOLLAR we have the indirect level of 76. 4057 BDT. This demonstrates from the earlier month March, the USD appreciated. This kind of also explains to that the BDT is lowered in value against UNITED STATES DOLLAR and the amount is the top against the USD in the last 3 months. Therefore we can say that the BDT cultivated weaker inside the month of November. However USD roundabout rate intended for AUD is no more than the previous month. This signifies that the AUD value can be appreciated where dollar worth is declined against the AUD. But the rate in the month of September 2013 was your lowest in amount this means in the month of September the AUD was more robust than the other two month. But in the recent month perspective it is usually concluded that the Australian currency is valued and getting better against USD.

Reason for Appreciation or Downgrading:

The real reason for any region exchange price to appreciate or depreciate is completely depend on the provision and demand of loanable funds, inflation and interest rate. In the latest month The fall of the BDT depreciate against US dollars, and this can be brought on because of the rising inflation which in turn decrease the BDT value. Inside the month of November the inflation level was several. 15% that has been increased through the last month October which having Inflation of 7. 03%. (Bangladesh Beauro of Statistica)

Where AUD appreciate against UNITED STATES DOLLAR, and conceivable reason may be the decline in the rate of inflation that was decreased simply by. 02% in the month The fall of from the a month ago according to the Aussie Bereu of Statistics.

There can be other explanation like the boost or reduction in the interest level change in relation with the transform of US rate of interest. Movement of Asian currencies:

For the analysis of currencies motion of Asia subcontinent with all the US dollar we took the Indian forex, rupee, Western currency, yen, and Malaysian currency Ringgits. Because in the Asia these kinds of currency will be more dominating throughout the world. From the general consideration you observe that in the last one year one of the most volatile forex against money was American indian rupee and fewer frequent activity was seen in the Japanese yen; reason may be the solid monetary insurance plan, less interest rate movement and intensely little inflation for less activity and vise versa intended for the Indian rupee. Evaluation:

china

India

Malaysia

Cina

1

India

0. 386097

1

Malaysia

0. 515962

0. 781826

1

Fig: co-relation of the currency movement

To see the Hard anodized cookware currency motion with the Dollars the co-relation measurement is utilized by calculating the changes over currency movements from the last 1 year. (Calculation is confirmed in the appendix ). From your co-relation we can conclude that the three Hard anodized cookware currencies are move in a similar direction together with the dollar motion. But the sensitivity of the values are different. You observe that the Of india currency move very favorably and more strongly with the money than the other currencies. Every one of the three currencies are having great co-relating along each other as well as the currencies are quoted in direct exchange rate great movements of the currencies demonstrating they are relocate the same course with money changes. Movement of Latina American countries:

For the analysis of currencies movements of Latin America together with the US dollars we took the Brazilian actual, Venezuelans Bolivar and...

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