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Topic 6 Tutorial - 20 March Exchange Rate Determination
Topic 6 Tutorial - 20 March Exchange Rate Determination
Assume that other things being equal, explain how each of the following
conditions would be expected to affect the value of the Malaysian ringgit (in
Questions 1 and 2), the U.S. dollar (Question 3), Chinese yuan (Question 4)
and the British pound sterling (Question 5):
3. Fed raises rates, sticks to forecast of 3 rate increases in 2017 (March 16,
2017, Financial Times)
4. China forex reserves dip under US$3tn to touch 5-year (February 7, 2017;
Financial Times)
5. Teresa May confident Brexit bill will pass unamended despite Lords defeat
(March 2, 2017; Financial Times)