Fin 521: International Finance HW 1

Term 131

Please click on the link below: http://www.oanda.com/currency/historical-rates/ 1. This site provides historical exchange rate data for many currencies. Please choose 5 years of weekly data for any two currencies against US Dollar or Euro. Select midpoint rates, and use the first letter of your first name to pick those currencies. Download the data in an Excel sheet and draw two separate time series graphs. Now comment on the trend of these two currencies over the time period. If possible find out the reasons for upward or downward trends in different regions of the graph. 2. Now download the bid and ask prices of the same two currencies and the time periods, and calculate % bid-ask spread, and then draw two separate graphs of % bid-ask spread. Comment on the trend of % bid-ask spread over the time periods if possible. 3. Now calculate the cross rates, and save it. Now download the actual rate between these two currencies from the site. Draw the two graphs together in one space. Comment on the relation between these two graphs if you find any discrepancy. Please make your work unique. Save all your work as an Excel file and upload it in the assignment box. Good luck!