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The U.S. dollar per British pound spot rate changes from S0(USD/GBP) = USD 1.3786/GBP to S1(USD/GBP)...

The U.S. dollar per British pound spot rate changes from S0(USD/GBP) = USD 1.3786/GBP to S1(USD/GBP) = USD 1.4890/GBP. What is the approximate percentage change in the value of the U.S. dollar?

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Answer #1
S0(USD/GBP) = USD 1.3786/GBP
that means
1 USD = 1/1.3786 GBP
1USD = 0.725374 GBP
Similarly forward rate
1 USD = 1/1.4890
1 USD = 0.671592 GBP
Percentage Change in US dollar = (0.67159 GBP -0.72537 GBP)/0.72537 GBP
=-0.05378/0.725374
= -7.41% (negative answer)
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