Economics

Recent Trends in the Exchange Rate: Review Questions 1. debate the reasons for the Australian bucks trend appreciation during the decimal point of the global options boom among 2005 and 2008. The reasons for the Australian dollars trend appreciation during the period of the global resources boom between 2005 and 2008 argon that the US dollar experienced a epochal depreciation of about 20% against other major currencies. lift world trade good prices and a favourable movement in Australias terms of trade reflected strong hire for Australian resources exports. And sustained portfolio investment into Australia by immaterial investors made Australia more(prenominal) attractive. 2. Why did the Australian dollar depreciate sapiently during the planetary Financial Crisis? The reason why the Australian dollar depreciated sharply during the Global Financial Crisis is that after the collapse of Leham Brothers Investment depone in USA and a worsening of the global honorable mention crisis, there was a sharp depreciation in the Australian dollar. Because of increased volatility in financial markets and falling commodity prices, The Australian dollar depreciated sharply. 3. Discuss the reasons for the Australian dollars appreciation between March 2009 and May 2010.

The reasons for the Australian dollars appreciation between March 2009 and May 2010 are that China and other East Asian economies such as Korea and ASEAN underpinned the global frugal recovery by strong economic growth. And this recovery led to a resumption of strong demand for Australian resources exports and increased export income as well as commodity prices. 4. How was the Australian dollars appreciation in 2009-10 linked to trends in the balance of payments? With an increase in resource exports, export income has tended to rise due to the higher prices being seize for commodity exports. This has increased the demand for Australian dollars in the foreign exchange market. In the financial account of the balance... If you want to get a full essay, order it on our website: Orderessay

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