Yesterday,the Australian dollar was trading in the foreign exchange market at 80 cents per U.S.dollar.Today,the Australian dollar is trading at 70 cents per U.S.dollar.The Australian dollar has ________ and a possible reason for the change is ________ in the Australian interest rate.

Question

Quizplus · Accepted Answer

The Australian dollar has depreciated as it is now trading at 70 cents per U.S. dollar, which is lower than the previous rate of 80 cents per U.S. dollar. The possible reason for the change is a decrease in the Australian interest rate, which can lead to a decrease in demand for the Australian dollar in the foreign exchange market, resulting in a fall in its value.

Yesterday,the Australian Dollar Was Trading in the Foreign Exchange Market