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International Financial System Capstone Project

International Financial System The country you chose.

The country chosen for this analysis is Australia.

The exchange rate and the total amount of the currency you purchased with your $90,000.

As of June 9, 2013 the current value of $90,000 is $94,724.90.

Your prediction for whether your country's currency with increase or decrease in value with respect to the dollar.

The Australian exchange rate will continue to be weak against the U.S. dollar, as the relative indexing of each of these currencies shows Australia's once-robust economy slowing down as mining experts are reduced. As Australia relies on a floating exchange rate, the volatility of both American and Australian capital markets including the direct effects of Gross Domestic...

dollar as this nations' reliance on a floating exchange rate system makes its currency valuations particularly sensitive to experts, balance of trade, and the current condition of its main industry, mining. The Australian economy continues to be one of the most resilient globally with a 3.4% gain in Gross Domestic Product (GDP) and a very low 5.5% unemployment rate. Exports however have continued to lag and the mining industry has shown signs of slowing down in the last six months. This will lead to the exchange rate dropping slightly in the near-term. Australia is also a trading…

Sources used in this document:
References

Akhtar, S., Faff, R., & Oliver, B. (2011). The asymmetric impact of consumer sentiment announcements on Australian foreign exchange rates. Australian Journal of Management, 36(3), 387.

Lonergan, W. (2004). Foreign exchange rates in Australian Mining Company valuations. JASSA, (4), 2-7.

Richards, N.D., Simpson, J., & Evans, J. (2009). The interaction between exchange rates and stock prices: An Australian context. International Journal of Economics and Finance, 1(1), 3-23.
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