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Exchange rate to a new equilibrium price

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Reference no: EM132481623

You find that inflation in Japan just reduced to 1.3%, while in US, the inflation rate just increased to 3%. You also observed that the spot rate for yen was $0.0075 before the adjustment by economists. With new inflation released, the demand and supply for currencies will drive the exchange rate to a new equilibrium price.

Reference no: EM132481623

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