Canadian-American exchange rate

The idea behind it is simple: If we see that the Canadian Dollar hasn’t moved much against the Euro, but the American Dollar has dropped significantly, we’ll know that the changes in the Canadian-American exchange rate are mostly caused by a devalued U.S. Dollar. Conversely, if we find the U.S. Dollar has held steady against the Euro while the Canadian Dollar has risen in value, we’ll know that changes in the Canadian-American exchange rate were largely caused by an appreciating Canadian Dollar.
We’ll compare both currencies against each other and five other major world currencies: the Euro, the British Pound, the Japanese Yen, the South Korean Won, and the Mexican Peso. We’ll consider how the exchange rate has changed between two dates: May 1, 2004 and October 27, 2004.

First up, the U.S. Dollar.
U.S. Dollar vs. 6 Currencies
Against Canadian Dollar: Down 10.58%
Against Euro: Down 5.69%
Against British Pound: Down 2.74%
Against Japanese Yen: Down 3.66%
Against South Korean Won: Down 6.21%
Against Mexican Peso:

Up 0.88% From these statistics we see that the U.S. Dollar has fallen in value against 5 of the 6 other currencies and has only risen slightly against the Mexican Peso. However, the American Dollar has fallen the most against the Canadian Dollar. If you’ve aware of the link between exchange rates and arbitrage you’ll know that this should mean the Canadian Dollar will have risen against the other currencies. The statistics bear that out: