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Forex Rate Forecasting

This is only part of the paper…. instruction as blow:

D. Forex Rate Forecasting (refer to the Textbook page 120 and page 126):

a. Calculating the following rates:
i. Spot exchange rate based on the Purchasing Power Parity Approach;
ii. Spot exchange rate based on the International Fisher Effects:
iii. Implied Real Interest Rates based latest government bond rate and forecast changes in consumer prices;
iv. Forward Rates based on the spot rates and 3-month market interest rates;
v. Your country’s misery index and use it as a relative measure for forecasting foreign exchange rate;

b. Analyze your results:
i. Check the your results with the relevant rates that have been published by reputable foreign exchange rate agencies;
ii. Explain the differences between your results and the ones published by the agencies mentioned in the above;
iii. Explain how the 3 major approaches are complementary with each other in foreign exchange rate determination;

We have all the data and the rest of part finished, just complete part D

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