Question

In: Finance

3. Go to federalreserve.gov and choose a currency that has historical data under "Country Data." Use...

3. Go to federalreserve.gov and choose a currency that has historical data under "Country Data."

  • Use Excel to chart the direct spot from 1/1/20 to the present (label axes, add a title). Copy and paste the graph into your Word doc.
  • Did your currency appreciate or depreciate against the USD?
  • Does your currency seem to have a lot of volatility?
  • Any other observations?

Data below is for South African Rand. I need assistance with questions and creating a chart.

1-Jan-20 ND
2-Jan-20 14.1220
3-Jan-20 14.2430
6-Jan-20 14.2060
7-Jan-20 14.3010
8-Jan-20 14.1560
9-Jan-20 14.2000
10-Jan-20 14.2550
13-Jan-20 14.4220
14-Jan-20 14.3970
15-Jan-20 14.3670
16-Jan-20 14.3770
17-Jan-20 14.4670
20-Jan-20 ND
21-Jan-20 14.4680
22-Jan-20 14.3380
23-Jan-20 14.4180
24-Jan-20 14.4250
27-Jan-20 14.6080
28-Jan-20 14.5660
29-Jan-20 14.6250
30-Jan-20 14.7879
31-Jan-20 14.9360
3-Feb-20 14.9100
4-Feb-20 14.7470
5-Feb-20 14.7980
6-Feb-20 14.9010
7-Feb-20 15.0620
10-Feb-20 15.0190
11-Feb-20 14.8510
12-Feb-20 14.8180
13-Feb-20 14.8870
14-Feb-20 14.9000
17-Feb-20 ND
18-Feb-20 14.9750
19-Feb-20 14.9800
20-Feb-20 15.1180
21-Feb-20 14.9660
24-Feb-20 15.1280
25-Feb-20 15.2000
26-Feb-20 15.1760
27-Feb-20 15.3920
28-Feb-20 15.6360
2-Mar-20 15.5370
3-Mar-20 15.2930
4-Mar-20 15.3480
5-Mar-20 15.5780
6-Mar-20 15.6350
9-Mar-20 15.9330
10-Mar-20 16.1030
11-Mar-20 16.1516
12-Mar-20 16.5310
13-Mar-20 16.3240
16-Mar-20 16.5330
17-Mar-20 16.5850
18-Mar-20 17.0960
19-Mar-20 17.3721
20-Mar-20 17.5000
23-Mar-20 17.7550
24-Mar-20 17.6550
25-Mar-20 17.4000
26-Mar-20 17.2768
27-Mar-20 17.5550
30-Mar-20 17.9450
31-Mar-20 17.7682
1-Apr-20 18.1450
2-Apr-20 18.5312
3-Apr-20 18.9850
6-Apr-20 18.6740
7-Apr-20 18.2220
8-Apr-20 18.2108
9-Apr-20 17.9030
10-Apr-20 18.0158
13-Apr-20 18.1400
14-Apr-20 18.3570
15-Apr-20 18.7320
16-Apr-20 18.6680
17-Apr-20 18.8500
20-Apr-20 18.8060
21-Apr-20 18.9650
22-Apr-20 19.0070
23-Apr-20 19.0400
24-Apr-20 18.9720
27-Apr-20 18.8510
28-Apr-20 18.6580
29-Apr-20 18.2510
30-Apr-20 18.4480
1-May-20 18.8500
4-May-20 18.7040
5-May-20 18.3880
6-May-20 18.7700
7-May-20 18.5210
8-May-20 18.3600
11-May-20 18.3890
12-May-20 18.2780
13-May-20 18.5210
14-May-20 18.5640
15-May-20 18.5400
18-May-20 18.3830
19-May-20 18.2650
20-May-20 17.9599
21-May-20 17.6530
22-May-20 17.7010
25-May-20 ND
26-May-20 17.4040
27-May-20 17.4180
28-May-20 17.4130
29-May-20 17.5960
1-Jun-20 17.4000
2-Jun-20 17.1950
3-Jun-20 16.8900
4-Jun-20 16.9310
5-Jun-20 16.8360
8-Jun-20 16.7900
9-Jun-20 16.6810
10-Jun-20 16.5560
11-Jun-20 17.0834
12-Jun-20 17.0110
15-Jun-20 17.2650
16-Jun-20 17.1525
17-Jun-20 17.2200
18-Jun-20 17.4850
19-Jun-20 17.3375
22-Jun-20 17.3350
23-Jun-20 17.2275
24-Jun-20 17.4050
25-Jun-20 17.2375
26-Jun-20 17.2625
29-Jun-20 17.3000
30-Jun-20 17.3525
1-Jul-20 17.0800
2-Jul-20 16.9675
3-Jul-20 ND
6-Jul-20 16.9750
7-Jul-20 17.0775
8-Jul-20 16.9750
9-Jul-20 16.9125
10-Jul-20 16.7475
13-Jul-20 16.6900
14-Jul-20 16.7500
15-Jul-20 16.5850
16-Jul-20 16.6400
17-Jul-20 16.6575
20-Jul-20 16.6700
21-Jul-20 16.4600
22-Jul-20 16.4550
23-Jul-20 16.5475
24-Jul-20 16.6925
27-Jul-20 16.4175
28-Jul-20 16.5425
29-Jul-20 16.5000
30-Jul-20 16.9125
31-Jul-20 17.0050
3-Aug-20 17.1925
4-Aug-20 17.3775
5-Aug-20 17.3175
6-Aug-20 17.4575
7-Aug-20 17.6325
10-Aug-20 17.6850
11-Aug-20 17.5350
12-Aug-20 17.3975
13-Aug-20 17.4175
14-Aug-20 17.3475
17-Aug-20 17.4600
18-Aug-20 17.3525
19-Aug-20 17.1800
20-Aug-20 17.2750
21-Aug-20 17.1275
24-Aug-20 16.9300
25-Aug-20 16.8625
26-Aug-20 16.9675
27-Aug-20 17.0025
28-Aug-20 ND
31-Aug-20 16.9150
1-Sep-20 16.6300
2-Sep-20 16.8325
3-Sep-20 16.7775
4-Sep-20 16.6025

Solutions

Expert Solution

To estimate whether a Indian currency appreciate or depreciate against dollar first download daily data of currency being estimate against USD and changes ND by selecting perivious date rate or next date rate whichever is available.Insert one column for USD Multiplier that is 1 here.Calculate changes in Rupees over the date by using

-(Current price-Previous Price)/Previous price * 100

Minus sign is inserted here to show the strenght of currency as we know if currency rate increased on next date its means for purchasing 1 dollar we have to pay more indian rupees ,consequently currency has bee devalued agaisnt dollar and vise-versa.

TO create chart select date column ,USD column and Rupees appreciation and depreciation (%) and insert line chart ,shown below.Orange colour.rupees strenght against dollar, spike above blue coluour line,that is USD,infers rupees appreciation % on particular date against dollar and below that blue line is indication of depreciation % in rupees against dollar.

To calculate Rupees Volatility ,I have inserted one more colum ,% changes (Refer table-1),To estimate daily % change in rupees by using

(Current Rate-Privious Rate) / Previous Rate * 100

Next step to calculate volatility we have to calculate standandard deviation, that tells us how much its vary from means.

=sample standard deviation

=the number of observations

=the observed values of a sample item

=the mean value of the observations

Alternatively You can Calculate it in Excel by =Std.s (Select the % Changes column)

Daily Stnadard deviation of Indian Rupees = 0.42%

On the basis of above daily SD of indian rupees we can say rupees volatility is Moderate.

Series Description

 INDIA -- SPOT EXCHANGE RATE, RUPEES/US$
Unit: Currency:_Per_USD
Multiplier: 1
Currency: INR
Unique Identifier: H10/H10/RXI_N.B.IN

Table -1

Time Period Currency:_Per_USD USD Rupees appreciation/ Depreciation (%) % Changes
2020-01-01 71.34 1
2020-01-02 71.34 1 0.000% 0.000%
2020-01-03 71.76 1 -0.589% 0.589%
2020-01-06 71.86 1 -0.139% 0.139%
2020-01-07 71.84 1 0.028% -0.028%
2020-01-08 71.51 1 0.459% -0.459%
2020-01-09 71.16 1 0.489% -0.489%
2020-01-10 70.94 1 0.309% -0.309%
2020-01-13 70.74 1 0.282% -0.282%
2020-01-14 70.85 1 -0.155% 0.155%
2020-01-15 70.69 1 0.226% -0.226%
2020-01-16 70.95 1 -0.368% 0.368%
2020-01-17 71.08 1 -0.183% 0.183%
2020-01-20 71.08 1 0.000% 0.000%
2020-01-21 71.17 1 -0.127% 0.127%
2020-01-22 71.07 1 0.141% -0.141%
2020-01-23 71.45 1 -0.535% 0.535%
2020-01-24 71.31 1 0.196% -0.196%
2020-01-27 71.45 1 -0.196% 0.196%
2020-01-28 71.24 1 0.294% -0.294%
2020-01-29 71.35 1 -0.154% 0.154%
2020-01-30 71.57 1 -0.308% 0.308%
2020-01-31 71.53 1 0.056% -0.056%
2020-02-03 71.32 1 0.294% -0.294%
2020-02-04 71.11 1 0.294% -0.294%
2020-02-05 71.19 1 -0.113% 0.113%
2020-02-06 71.19 1 0.000% 0.000%
2020-02-07 71.47 1 -0.393% 0.393%
2020-02-10 71.28 1 0.266% -0.266%
2020-02-11 71.25 1 0.042% -0.042%
2020-02-12 71.29 1 -0.056% 0.056%
2020-02-13 71.27 1 0.028% -0.028%
2020-02-14 71.52 1 -0.351% 0.351%
2020-02-17 71.52 1 0.000% 0.000%
2020-02-18 71.56 1 -0.056% 0.056%
2020-02-19 71.55 1 0.014% -0.014%
2020-02-20 71.67 1 -0.168% 0.168%
2020-02-21 71.9 1 -0.321% 0.321%
2020-02-24 71.92 1 -0.028% 0.028%
2020-02-25 71.81 1 0.153% -0.153%
2020-02-26 71.58 1 0.320% -0.320%
2020-02-27 71.65 1 -0.098% 0.098%
2020-02-28 72.53 1 -1.228% 1.228%
2020-03-02 72.88 1 -0.483% 0.483%
2020-03-03 73.03 1 -0.206% 0.206%
2020-03-04 73.49 1 -0.630% 0.630%
2020-03-05 73.5 1 -0.014% 0.014%
2020-03-06 74 1 -0.680% 0.680%
2020-03-09 74.21 1 -0.284% 0.284%
2020-03-10 74.15 1 0.081% -0.081%
2020-03-11 73.68 1 0.634% -0.634%
2020-03-12 74.25 1 -0.774% 0.774%
2020-03-13 73.86 1 0.525% -0.525%
2020-03-16 74.01 1 -0.203% 0.203%
2020-03-17 74.26 1 -0.338% 0.338%
2020-03-18 74.55 1 -0.391% 0.391%
2020-03-19 74.78 1 -0.309% 0.309%
2020-03-20 75.31 1 -0.709% 0.709%
2020-03-23 76.29 1 -1.301% 1.301%
2020-03-24 76.37 1 -0.105% 0.105%
2020-03-25 76.36 1 0.013% -0.013%
2020-03-26 74.89 1 1.925% -1.925%
2020-03-27 75.47 1 -0.774% 0.774%
2020-03-30 75.33 1 0.186% -0.186%
2020-03-31 75.39 1 -0.080% 0.080%
2020-04-01 76.4 1 -1.340% 1.340%
2020-04-02 76.34 1 0.079% -0.079%
2020-04-03 76.24 1 0.131% -0.131%
2020-04-06 75.95 1 0.380% -0.380%
2020-04-07 75.64 1 0.408% -0.408%
2020-04-08 75.96 1 -0.423% 0.423%
2020-04-09 76.3 1 -0.448% 0.448%
2020-04-10 75.87 1 0.564% -0.564%
2020-04-13 76.25 1 -0.501% 0.501%
2020-04-14 76.11 1 0.184% -0.184%
2020-04-15 76.56 1 -0.591% 0.591%
2020-04-16 76.75 1 -0.248% 0.248%
2020-04-17 76.56 1 0.248% -0.248%
2020-04-20 76.56 1 0.000% 0.000%
2020-04-21 76.95 1 -0.509% 0.509%
2020-04-22 76.44 1 0.663% -0.663%
2020-04-23 75.84 1 0.785% -0.785%
2020-04-24 76.26 1 -0.554% 0.554%
2020-04-27 76.23 1 0.039% -0.039%
2020-04-28 75.96 1 0.354% -0.354%
2020-04-29 75.45 1 0.671% -0.671%
2020-04-30 75.08 1 0.490% -0.490%
2020-05-01 75.75 1 -0.892% 0.892%
2020-05-04 75.64 1 0.145% -0.145%
2020-05-05 75.72 1 -0.106% 0.106%
2020-05-06 76.08 1 -0.475% 0.475%
2020-05-07 75.78 1 0.394% -0.394%
2020-05-08 75.58 1 0.264% -0.264%
2020-05-11 75.87 1 -0.384% 0.384%
2020-05-12 75.03 1 1.107% -1.107%
2020-05-13 75.33 1 -0.400% 0.400%
2020-05-14 75.48 1 -0.199% 0.199%
2020-05-15 75.82 1 -0.450% 0.450%
2020-05-18 75.74 1 0.106% -0.106%
2020-05-19 75.67 1 0.092% -0.092%
2020-05-20 75.47 1 0.264% -0.264%
2020-05-21 75.63 1 -0.212% 0.212%
2020-05-22 75.99 1 -0.476% 0.476%
2020-05-25 75.99 1 0.000% 0.000%
2020-05-26 75.43 1 0.737% -0.737%
2020-05-27 75.88 1 -0.597% 0.597%
2020-05-28 75.67 1 0.277% -0.277%
2020-05-29 75.59 1 0.106% -0.106%
2020-06-01 75.56 1 0.040% -0.040%
2020-06-02 75.03 1 0.701% -0.701%
2020-06-03 75.32 1 -0.387% 0.387%
2020-06-04 75.43 1 -0.146% 0.146%
2020-06-05 75.61 1 -0.239% 0.239%
2020-06-08 75.44 1 0.225% -0.225%
2020-06-09 75.44 1 0.000% 0.000%
2020-06-10 75.65 1 -0.278% 0.278%
2020-06-11 75.97 1 -0.423% 0.423%
2020-06-12 76.03 1 -0.079% 0.079%
2020-06-15 75.97 1 0.079% -0.079%
2020-06-16 76.19 1 -0.290% 0.290%
2020-06-17 76.25 1 -0.079% 0.079%
2020-06-18 76.32 1 -0.092% 0.092%
2020-06-19 76.21 1 0.144% -0.144%
2020-06-22 75.76 1 0.590% -0.590%
2020-06-23 75.48 1 0.370% -0.370%
2020-06-24 75.65 1 -0.225% 0.225%
2020-06-25 75.58 1 0.093% -0.093%
2020-06-26 75.63 1 -0.066% 0.066%
2020-06-29 75.52 1 0.145% -0.145%
2020-06-30 75.53 1 -0.013% 0.013%
2020-07-01 75.5 1 0.040% -0.040%
2020-07-02 74.78 1 0.954% -0.954%
2020-07-03 74.78 1 0.000% 0.000%
2020-07-06 74.62 1 0.214% -0.214%
2020-07-07 74.81 1 -0.255% 0.255%
2020-07-08 74.94 1 -0.174% 0.174%
2020-07-09 75.12 1 -0.240% 0.240%
2020-07-10 75.14 1 -0.027% 0.027%
2020-07-13 75.16 1 -0.027% 0.027%
2020-07-14 75.38 1 -0.293% 0.293%
2020-07-15 75.11 1 0.358% -0.358%
2020-07-16 75.11 1 0.000% 0.000%
2020-07-17 74.93 1 0.240% -0.240%
2020-07-20 74.77 1 0.214% -0.214%
2020-07-21 74.54 1 0.308% -0.308%
2020-07-22 74.56 1 -0.027% 0.027%
2020-07-23 74.81 1 -0.335% 0.335%
2020-07-24 74.77 1 0.053% -0.053%
2020-07-27 74.77 1 0.000% 0.000%
2020-07-28 74.91 1 -0.187% 0.187%
2020-07-29 74.92 1 -0.013% 0.013%
2020-07-30 74.88 1 0.053% -0.053%
2020-07-31 74.9 1 -0.027% 0.027%
2020-08-03 75.2 1 -0.401% 0.401%
2020-08-04 75.06 1 0.186% -0.186%
2020-08-05 74.8 1 0.346% -0.346%
2020-08-06 74.87 1 -0.094% 0.094%
2020-08-07 75.04 1 -0.227% 0.227%
2020-08-10 74.91 1 0.173% -0.173%
2020-08-11 74.61 1 0.400% -0.400%
2020-08-12 74.73 1 -0.161% 0.161%
2020-08-13 74.81 1 -0.107% 0.107%
2020-08-14 74.87 1 -0.080% 0.080%
2020-08-17 74.74 1 0.174% -0.174%
2020-08-18 74.62 1 0.161% -0.161%
2020-08-19 74.85 1 -0.308% 0.308%
2020-08-20 75.01 1 -0.214% 0.214%
2020-08-21 74.92 1 0.120% -0.120%
2020-08-24 74.17 1 1.001% -1.001%
2020-08-25 74.2 1 -0.040% 0.040%
2020-08-26 74.22 1 -0.027% 0.027%
2020-08-27 73.89 1 0.445% -0.445%
2020-08-28 73.89 1 0.000% 0.000%
2020-08-31 73.25 1 0.866% -0.866%
2020-09-01 73 1 0.341% -0.341%
2020-09-02 73.27 1 -0.370% 0.370%
2020-09-03 73.39 1 -0.164% 0.164%
2020-09-04 73.29 1 0.136% -0.136%

jeff jeffy answered 1 year ago
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