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    NUST Business School: Sir Nabeel Safdar Mahrukh Chohan

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    The document contains two student assignments submitted to Sir Nabeel Safdar for the course FIN-329 Behavioral Finance. The first assignment was submitted by Mahrukh Chohan on March 3rd, 2019. The second assignment was submitted by Dure Sameen Fatima also on March 3rd, 2019.

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    NUST Business School: Sir Nabeel Safdar Mahrukh Chohan

    Uploaded by

    mahrukh
    56 views4 pages
    The document contains two student assignments submitted to Sir Nabeel Safdar for the course FIN-329 Behavioral Finance. The first assignment was submitted by Mahrukh Chohan on March 3rd, 2019. The second assignment was submitted by Dure Sameen Fatima also on March 3rd, 2019.

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    The document contains two student assignments submitted to Sir Nabeel Safdar for the course FIN-329 Behavioral Finance. The first assignment was submitted by Mahrukh Chohan on March 3rd, 2019. The second assignment was submitted by Dure Sameen Fatima also on March 3rd, 2019.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    56 views4 pages

    NUST Business School: Sir Nabeel Safdar Mahrukh Chohan

    Uploaded by

    mahrukh
    The document contains two student assignments submitted to Sir Nabeel Safdar for the course FIN-329 Behavioral Finance. The first assignment was submitted by Mahrukh Chohan on March 3rd, 2019. The second assignment was submitted by Dure Sameen Fatima also on March 3rd, 2019.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    NUST Business School

    FIN-329 Behavioral Finance


    Assignment# 1

    Submitted to:
    Sir Nabeel Safdar
    Submitted by:
    Mahrukh Chohan

    Bs. AcF 2K16-A

    Date: March 3rd, 2019.


    NUST Business School

    FIN-329 Behavioral Finance


    Assignment# 1

    Submitted to:
    Sir Nabeel Safdar
    Submitted by:
    Dure Sameen Fatima

    Bs. AcF 2K16-A

    Date: March 3rd, 2019.


    Expected Valuation of Euro-Dollar Exchange rate

    When the year started, analysts anticipated new lows for Dollar-Euro, fearing things to get
    worse before they got any better. And they were proved right, for better part of the first
    quarter of 2019 but the dollar-euro exchange rate ultimately climbed in the mid of February,
    as the hopes that the eurozone economy could revive increased, combined with some weak
    dollar statistics.

    We have numerous reasons to believe that euro will strengthen against dollar in the coming
    month. Some of them are mentioned below.

    Firstly, US-China trade tiff is forcing many investors to sell the dollar as there is a sense of
    uncertainty prevailing in the market. Also, the newly published Federal Reserve report didn’t
    provide much hope to them and so does the failed US-North Korea summit. It has made
    investors more hesitant to buy the Dollar.

    Since Euro is Dollar’s biggest currency rival, it is benefitting from the weak position of
    Dollar.

    Secondly, the affect of tax-cuts that boosted the dollar in 2018 has started to fade away and
    the growth has started to return from an inflated “above-potential” rate to “potential”. Hence
    it is expected to decline from an overvalued level back towards equilibrium.

    Thirdly, the unemployment of Eurozone came in at 7.8% in February, which is same as


    January. This suggests that, despite all the international pressure, GDP growth remains strong
    enough to drive a continued improvement. This will positively influence the Euro.

    Lastly, according to a report a “short-limited extension” may be in works for Brexit in case of
    no deal being agreed by the UK Parliament. This may strengthen the Euro against Dollar as it
    will recede the reservations in the investors.

    Hence, we can positively expect that in the coming month Euro will strengthen against
    Dollar.
    Dollar to Euro exchange rate over two decades

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