We discussed in class about the recent trend of the valuation of major currencies including U.S. dollar. Especially the article from The Economist, The fate of the dollar will shape financial markets in 2019 presented some ideas on the causes of the recent dollar appreciation and also on some scenarios of possible trend of major currency values in near future.
a) (5 points) Explain the possible economic reasons why U.S. dollar appreciated against other major currencies including pound sterling, Euro and Japanese yen in 2018.
b) (10 points) The author of the article presents two possible scenarios of dollar depreciation path over the next year or so, depending on the dynamics of three factors i) Feds decision on interest rate, ii) trade dispute between U.S. and China, and iii) Euro-zone economy. Present your thoughts on the currency valuation change (i.e., whether will appreciate or depreciate) and its pace of the relevant economies (i.e., U.S. China, Europe, etc.) in light of those three factors.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more