Answer the following questions related to the foreign exchange rate and market.(1) The current exchange rate between the U.S. dollar and the Australian dollar is U.S.$1 = AUD$1.31. If the U.S. dollar is expected to appreciate by 5% relative to theAustralian dollar, what is the new expected exchange rate?(2) The Argentinean peso trades at 0.06 peso per U.S. dollar. How many Argentineanpesos would you tip a taxi driver if you give her a $9 bill?(3) During the 1997 Asian financial crisis, the Thai baht was trading at $0.02475 per Thaibaht. The Thai baht is trading at $0.03093 per Thai baht now. What is the percentagechange in the Thai baht's value? Would you consider it an appreciation ordepreciation?(4) Suppose that the U.S. Federal Reserve decides to raise interest rates to combatinflation. How will this decision affect the exchange rate between the U.S. dollar andtheeuro? Discuss with references or a practical example.

AS per guideline if more than 1 question asked i am able to solve only 1 question. Please repost the…

(1) The current exchange rate between the U.S. dollar and the Australian dollar is U.S. $1 = AUD$1.31. If the U.S. dollar is expected to appreciate by 5% relative to the Australian dollar, what is the new expected exchange rate?

(1) The current exchange rate between the U.S. dollar and the Australian dollar is U.S. $1 = AUD$1.31. If the U.S. dollar is expected to appreciate by 5% relative to the Australian dollar, what is the new expected exchange rate?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP3: Part 3: Exchange Rate Risk Management

Section: Chapter Questions

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