US Dollor depreciates under speculation of FED Rate Hike

http://www.marketwatch.com/story/dollar-drops-against-major-rivals-with-euro-boosted-by-quarterly-economic-snapshot-2017-06-23

 

The article reports depreciation of dollar against major currencies, Euro in particular. The depreciating pressure on US/Euro Exchange rates have resulted from the speculation of hike in Fed rates and Eurozone’s optimistic quarterly economic growth rates.

 

The topics covered are determinants of Exchange Rate, Effects of Inflation and Interest rates on Exchange rates. Explain using the Exchange Rate diagrams.

 

Evaluation will include the short term and long term effects of depreciation on Trade Deficit ,  Current Account , Balance of payments , Exporters, Importers, Consumers, workers, domestic producers and Government.

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