A year ago, the exchange rate of the foreign currency Australian dollar (A$) against the home currency Malaysian ringgit (MYR) was MYR 4.4168/A$. After one year, point H in the following graph represents that the change of exchange rate does not perfectly offset interest rate differentials where ih and if is the interest rate of MYR and A$, respectively. What is the spot rate of the Australian dollar against the Malaysian ringgit (MYR/A$)? (enter 4 decimal places number with no sign and symbol)

Transcribed Image Text:

ရာ ● V > in-if (%) L 5 3 1 I -5 T T T I 3 1 I 4 G IFE line 5 % A in the foreign currency's spot rate ရာ ● V > in-if (%) L 5 3 1 I -5 T T T I 3 1 I 4 G IFE line 5 % A in the foreign currency's spot rate

Answer rating: 100% (QA)

MYRA 44168A Explanation Assuming that the interest rate differential betwee... View the full answer