Question

The U.S. dollar exchange rate decreased from ​$1.34 Canadian in March, 2017 to ​$1.29 Canadian in March,2018​, and it decreased from 112.92 Japanese yen in March,2017 to 106.09 yen in March,2018.

​*Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis.

Did the U.S. dollar appreciate or depreciate against the Canadian​ dollar?
The U.S. dollar______against the Canadian dollar.

Did the U.S. dollar appreciate or depreciate against the Japanese​ yen?
The U.S. dollar______against the Japanese yen.

Answer 1

The U.S. dollar depreciated against both the Canadian dollar and the Japanese yen, as indicated by the decreased exchange rates in the provided timeframe.

Step-by-step explanation:

When determining whether the U.S. dollar has appreciated or depreciated against another currency, we consider the exchange rate movements. In this case, the U.S. dollar exchange rate decreased from ​$1.34 Canadian in March 2017 to ​$1.29 Canadian in March 2018. This movement indicates that the U.S. dollar depreciated against the Canadian dollar because it now costs less Canadian dollars to buy one U.S. dollar. Similarly, the U.S. dollar exchange rate decreased from 112.92 Japanese yen in March 2017 to 106.09 yen in March 2018, which also signifies that the U.S. dollar depreciated against the Japanese yen for the same reason, as it now costs fewer yen to buy one U.S. dollar.