Currency Cross Rates 10.26.10

Currency Cross Rates 10.26.10 - $1.00 = 81.7150 so 1 =...

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Currency Cross Rates from Bloomberg.com, October 26, 2010 USD EUR JPY GBP CHF CAD AUD HKD HKD 7.7584 10.7169 0.0949 12.2794 7.8602 7.5630 7.5489 - AUD 1.0277 1.4197 0.0126 1.6266 1.0412 1.0019 - 0.1325 CAD 1.0258 1.4170 0.0126 1.6236 1.0393 - 0.9981 0.1322 CHF 0.9870 1.3634 0.0121 1.5622 - 0.9622 0.9604 0.1272 GBP 0.6318 0.8728 0.0077 - 0.6401 0.6159 0.6148 0.0814 JPY 81.7150 112.8762 - 129.3328 82.7879 79.6574 79.5087 10.5325 EUR 0.7239 - 0.0089 1.1458 0.7334 0.7057 0.7044 0.0933 USD - 1.3813 0.0122 1.5827 1.0131 0.9748 0.9730 0.1289 Above is a chart designed to display the cross rates of eight major world currencies. Scan across the chart to find the rate of exchange between any two of these currencies. Unless indicated otherwise: intraday data is at least 15 minutes delayed; mutual fund NAVs are updated at the close of every market day; all prices are in the local currency; Time is ET. On October 26 2010 at 11:00 p.m., the following exchange rates were reported:
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Unformatted text preview: $1.00 = 81.7150 so 1 = 1/81.7150 = $0.0122 $1.00 = 0.7329 so 1 = $1.3813 1.00 = 112.8762 so 1 = 0.0089 Example of Purchasing Power Parity Can we profit from international arbitrage? Start with $1.00. Trade $1.00 for 81.7150. Trade 81.7150 for 81.7150 x 0.0089 = 0.7272635 Trade 0.7272635 for 0.7272635 x 1.3813 = $1.004569. So here you start with a dollar and end up with a dollar and .46 of a cent, $1.0046. The profit of $0.0046 per dollar is not enough to cover the currency transaction fees, usually 1% per dollar or $0.01. OR Dollar price of yen in United States is $0.0122. Dollar price of yen in Europe is 0.0089 x 1.3813 = $0.0123. Here, the potential profit of $0.0001 (one one-hundredth of a cent) per yen is again not worth the currency transaction fees....
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