Appreciated and depreciated value of euro

Reference no: EM1312106

About four months ago, one Euro traded for about $ 1.18. Recently, the Euro is trading for about $1.29.

a) Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.

b) Given your answer above (ie. appreciating or depreciating dollar), explain what are some of the consequences of this change. In what ways will this change likely affect the US economy? Be as comprehensive as you can.

Reference no: EM1312106

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