Plot the exchange rate of US dollars against 3 other foreign currencies in separate figures from December
Question:
Plot the exchange rate of US dollars against 3 other foreign currencies in separate figures from December 1st, 2019 to February 28th, 2023. Note: the exchange rate is defined as how much foreign currency can be purchased by 1 US dollar. For instance, 1 USD = 139 Japanese Yen. You are allowed to use any country except for Russia. The sanction on Russia makes the story more complicated.
Comment on how US monetary policy affects the exchange rate.
Explain why US dollar appreciates when US conduct contractionary monetary policy. In other words, explain why US dollar appreciate when the Fed raise the federal funds rate.
Foreign currency tends to depreciate when US conduct contractionary monetary policy (Fed raises federal funds rate). What can the foreign central bank do to slow the rapid depreciation due to US interest rate hike.
Expert Answer:
To plot the exchange rate of US dollars against three foreign currencies from December 1st 2019 to February 28th 2023 I would need access to historica... View the full answer
