The following are the exchange rates of the forex pairs in a trading platform: ...
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Accounting
The following are the exchange rates of the forex pairs in a trading platform:
Forex pair
Bid
Offer
GBPUSD
1.4033
1.4114
EURGBP
0.8577
0.8638
AUDJPY
84.36
84.97
EURJPY
133.16
133.77
USDCHF
0.8957
0.9018
David, a businessman, would like to transfer USD250,000 to his branch office in Germany.
Determine how much EUR would be received by the account of Davids branch office in Germany. (4 marks)
Sakura Energy, a Japanese Brent oil trading company, would like to import 100,000 barrels of Brent oil at the current price of USD60 per barrel from an exporter in Saudi Arabia.
Determine how much proceeds (in JPY) will be paid by Sakura Energy. (6 marks)
Explain THREE (3) differences between scalpers, positioners, and structural traders in the foreign exchange market. (9 marks)
The exchange rate of a currency is very sensitive on the interest rate decision of respective monetary authority.
Explain the effects of raising interest rates and falling interest rates on the exchange rate of a currency. (6 marks)
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