Currency Comparison

Instructions 1) Pick two currencies   2) In a word-processed document of no more than 1000 words, please discuss the following:   –        Discussion of any trade or interest rate factors        –        Description of economic conditions and forecasts ·      –       Analysis of the reasons for any changes. –       Your report should include a clearly labeled graph of the currency pair and analysis of their performance over the past year including  –       Test the following theories (Excel file needs to be provided testing the below theories)     o   International fisher effect –       o   Purchasing Power Parity (PPP) –       o   Estimate NPV using home and foreign currency approaches –       Do these theories apply to your 2 currencies?   3) EXCEL file needs to be provided with the (3) theories tested and data   Make sure to properly reference all of your sources and clearly justify any assumptions.