HELP PLEASE……. Currency Brain ache

This topic has 5 replies, 3 voices, and was last updated Apr-174:50 pm by cs_1988.

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- cs_1988
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  21 Apr 2017 at 4:26 pm
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  If any one is on Mock 2, book 1 = In question 3 it lists exchange rates, and the whole question assumes the USD is depreciating.
  
  FX CAD/USD = 1.48 in 07
  FX CAD/USD = 1.37 in 08 – Surely the dollar is appreciating/strengthening???
  
  Thanks in advance
- cs_1988
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  21 Apr 2017 at 4:26 pm
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  and Schweser, lol!
- Alta12
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  21 Apr 2017 at 4:42 pm
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  USD depreciated. the quote is always based on the base currency in this case USD.
- cs_1988
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  21 Apr 2017 at 4:26 pm
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  Morning paper!
- cs_1988
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  21 Apr 2017 at 4:50 pm
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  of course. It had got to the point where i couldn’t see how it was right lol. Thanks…. Hopefully it won’t happen on the exam!
- vincentt
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  - CFA Level 3
  21 Apr 2017 at 4:44 pm
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  @alta12 is right, the logic is that previously you would need $1.48 CAD to buy a dollar, but now you only need $1.37 CAD to buy a dollar, clearly the dollar is cheaper now.
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