In: Accounting
The effect of fluctuation on profits is shown below in chart:
Months | Exchange Rate | |
Dollar Vs Euro | Dollar Vs Yen | |
Jul-19 | 1.1285 | 108.2964 |
Aug-19 | 1.1079 | 107.4669 |
Sep-19 | 1.0992 | 106.1237 |
Oct-19 | 1.0932 | 107.7368 |
Nov-19 | 1.1168 | 108.2020 |
Dec-19 | 1.1017 | 109.5618 |
Jan-20 | 1.1165 | 107.9284 |
Feb-20 | 1.1095 | 108.3917 |
Mar-20 | 1.1051 | 107.4345 |
Apr-20 | 1.0956 | 107.1719 |
May-20 | 1.1091 | 106.9301 |
Jun-20 | 1.1132 | 107.5859 |
If dollar rises against the another currency then
In case of export the profit will rise
In case of import the profit will fall
If dollar falls against another currency then
In case of export the profit will fall
In case of import the profit will rise