One function of the foreign exchange market is to convert the
currency of one country into the currency of another. A second
function of the foreign exchange market is to provide insurance
against foreign exchange risk. The most common approach to exchange
rate forecasting is fundamental analysis. This relies on variables
such as money supply growth, inflation rates, nominal interest
rates, and balance-of-payment positions to predict future changes
in exchange rates. Identify a country outside of the U.S. and its...