Q1. Provide and interpret the descriptive statistics (For calculation part for nom appr/depr, please refer to table 1) EURO Based on the calculation of the average exchange rate of Euro against Malaysian Ringgit for the period of 2001-2004 (June) we found it to be 3.8936. As far as max/min analysis are concerned, the max value or the appreciation of Euro with respect to MYR during this period was 4.8851MYR/EURO, whereas the lowest value or …showed first 75 words of 1759 total…

…showed last 75 words of 1759 total…country. Another factor that could be used in order to foretell the currency appreciation or depreciation is interest rates. Countries, which have high interest rate, will experience their currencies to depreciate compared to those with lower rates. Forward rates may also be considered in some instances as good indicator for the estimation of currency appreciation or depreciation. If the currency is sold at forwards, there is likelihood that the currency will appreciate, and vice versa.