Question:
Suppose your company imports computer motherboards from Singapore. The
exchange rate is given in Figure 20.1. You have just placed an order for 30,000 motherboards at a cost to you of 147.80 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $121 each. Calculate your profit if the
exchange rate goes up or down by 10 percent over the next 90 days. What is the break-even
exchange rate? What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Currency per USD US$ vs. Currency per USD YTD % chg US$ vs. USD equiv USD equiv Country/currency Country/currency YTD % chg Americns Europe Агоentina peso Brazil real 1173 3897 8759 8.5280 2.5658 30.8 Czech Rep. koruna Denmark krone 04507 1673 22.188 5.9757 11.6 10.1 B.6 Canada dollar 1.1417 7.5 Euro area euro 12452 .00406209 246.1800 8031 10.4 Chile peso Colombia peso 001642 609.1000 15.8 14.0 Hungary forint Norway krone Poland zloty Romania lau 13.9 15.8 .0004511 2217 1422 7.0305 Ecuador US dollar unch 2976 3.3598 11.1 Maxico paso .0718 13.9334 6.8 2808 3.5617 9.5 Peru new sol 3424 2.9210 4.2 Russia ruble 01989 50.274 23.545 Sweden krona Switzerland franc Uruguay peso Venezuela b. fuerte .04247 11.1 1342 1.0357 74518 15.8 8.1 15748031 6.3500 unch .9655 1-mos forward 1.0362 9651 7.5 Asia-Pacific 1.0369 1.0382 4505 1.5649 9644 .9632 3-mos forward 6-mos forward 7.5 7.4 1.1755 1.1780 Australian dollar 1-mos forward .8507 .8489 4.8 4.6 Turkey lira 2.2200 3.3 3-mos forward .8452 11831 4.6 UK pound 1-mos forward .6390 5.8 6-mos forward 8397 1.1909 4.7 1.5646 .6391 5.5 China yuan 1628 6.1431 1.4 3-mos forward 1.5639 6394 5.5 Hong Kong dollar India rupee Indonesia rupiah 129 7.7546 unch 6-mos forward 1.5626 .6400 5.5 .01606 62.25095 .6 .0000B17 12246 Middle Enst/Africn Japan yen .00843 118.62 118.54 12.6 Bahrain dinar 2.6516 3771 unch 28 1-mos forward .00844 11.2 Egypt pound 1399 7.1471 3-mos forward .00844 118.49 11.2 Israel shekel 2567 3.8950 12.3 -4 6-mos forwerd Malaysin ringgit .00845 2951 7843 Jordan dinar Kenya shilling Kuwait dinar 1.4107 7049 118.37 11.1 3.3987 3.2 .01109 90149 4.3 3.429 0006612 Now Zaaland dollar 12750 4.8 2916 3.3 -3,4 Pakistan rupee Philippines peso Singapore dollar 00982 101.B05 Lebanon pound Saudi Arabia riyal 1512.45 .0223 44.905 1.2 2665 3.7529 7667 0903 5.5 13043 3.3 South Africa rand 11.0695 South Korea won .0008983 1113.2 5.4 UAE dirham 2723 3.6731 unch Taiwan dollar .03226 30.999 3.6 Thailand baht .03045 32.843 Vietnam dong 21355 00005 11