What is the trade weighted exchange rate of the us dollar

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1. What is the trade-weighted exchange rate of the U.S. dollar? What explains the increase in the trade-weighted exchange rate of the U.S. dollar in the late 1990s and late 2000s?

2. What is the interest-rate parity condition? How does the interest-rate parity condition account for differences in interest rates in different countries on similar bonds?

3. What are the main reasons that interest-rate parity may not hold exactly?

Reference no: EM131305175

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