If the C$ strengthens by 1% relative to the US$ (US$1.00 = C$1.0339), what will be the new value for the US$ per C$1.00?

Question

Quizplus · Accepted Answer

If the C$ strengthens by 1% relative to the US$, it means that you need fewer Canadian dollars to buy 1 US dollar. The original rate is US$1.00 = C$1.0339. To find the new value, you divide 1 by the new rate of C$ (1.0339 * 99% = 1.0236) to get the new rate of US$ per C$1.00, which is approximately US$0.9769.

If the C$ Strengthens by 1% Relative to the US