1 Explain how the supply and demand for currencies can be viewed as the foreign exchange rate determination 2 Explain how the asset market approach can be used in forecasting the future spot exchange rate ...

1 Like the other prices in the economy the exchange rates are also determined by supply and demand especially the supply and demand for each currency ...

1. Explain how the supply and demand for currencies can be viewed as the foreign exchange rate...

Question:

1. Explain how the supply and demand for currencies can be viewed as the foreign determination.
2. Explain how the asset market approach can be used in forecasting the future spot Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...