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The U.S. dollar exchange rate increased from ?$1.24 Canadian in June 2015 to ?$1.29 Canadian in...

The U.S. dollar exchange rate increased from ?$1.24 Canadian in June 2015 to ?$1.29 Canadian in June 2016?, and it decreased from 121 Japanese yen in June 2015 to 108 Japanese yen in June 2016.

What was the value of the Canadian dollar in terms of U.S. dollars in June 2015 and June 2016?? (2 decimal places)

Did the Canadian dollar appreciate or depreciate against the U.S. dollar over the year June 2015 to June 2016??

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Answer #1

In June 2015, 1.24 Canadian dollar could buy 1 US dollar. So, 1 Canadian dollar could buy 1/1.24 = 0.81 US dollar.

In June 2016, 1.29 Canadian dollar could buy 1 US dollar. So, 1 Canadian dollar could buy 1/1.29 = 0.77 US dollar.

The value of the Canadian dollar in terms of U.S. dollars in June 2015 = 0.81 US dollar and in June 2016 = 0.77 US dollar.

In June 2015, 1 Canadian dollar could buy 0.81 US dollar and in June 2016, 1 Canadian dollar could buy 0.77 US dollar. So, the purchasing power of Candian dollar declined between June 2015 and June 2016. That means the Canadian dollar depreciated against the US dollar.

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