In August 2008, Mexican pesos were trading at $0.10 on the foreign exchange market. By November, they

Question:

In August 2008, Mexican pesos were trading at $0.10 on the foreign exchange market. By November, they were down to $0.07, a decline of 30%. Explain the fall in the price of a peso using supply and demand curves. In words, explain the equivalent rise in the price of a dollar.