Factor Exchange Rates
The formula is base – term or variable/fixed. For New Zealand dollar/U.S. dollar spot price, it costs 6830 at this time to buy one U.S. dollar. The reverse asks how many dollars does it take to buy one New Zealand dollar. The formula is one U.S. dollar divided by 6830 New Zealand dollars for an exchange rate of 0.000146.
The euro/U.S. dollar spot price traded at 2384 so 1 euro divided by 2384 is equal to 0.00419. It costs .00419 to buy one euro. Euro/New Zealand dollar trades at 1.7667 so New Zealand dollar to euro is equal to 0.56602 New Zealand dollars to equal one euro. Are exchange rates overvalued or undervalued? That would depend on prices of products, the cost of business at these rates, and how one viewed this question. ...
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