Value against the euro moving from an exchange rate

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Reference no: EM131902314

1. The Japanese Yen suddenly changes in value against the euro moving from an exchange rate of ¥140.541/€ to ¥139.980/€. Thus, the Yen has ________ by ________.

Appreciated or Depreciated by _________

2. Assume the current Yen-euro spot rate is ¥140.541/€. Further, the current nominal 180-day rate of return in Japan is 1.2% and 4.5% in the Europe. Assuming yen is your home currency, what is the approximate forward exchange rate for 180 days?

Forward Exchange Rate = __________

Reference no: EM131902314

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