Demand for a dollar and the interest rate

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Reference no: EM1375073

Assume that following two programes take place in the market for Kuwait's currency, the dinar; The United States demand for oil, Kuwait's main export good, declines, and market interest rates on financial assets denominated in dinar decrease relative to United States interest rates. What happens to the dollar price of the dinar? Does the dinar appreciate or depreciate relative to the dollar?

Reference no: EM1375073

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