How It Came Out
Herr Ruhnau was both right and wrong. He was definitely right in his expectations. The dollar appreciated for one more month, and then weakened over the coming year. In fact, it did not simply weaken, it plummeted. By January 1986 when payment was due to Boeing, the spot rate had fallen to DM2.3/$ from the previous year’s DM3.2/$ as shown in Exhibit 3. This was a spot exchange rate movement in Lufthansa’s favor.