As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar was R$1.95/$.

Question:

As of November 1, 1999, the between the Brazilian real and U.S. dollar was R$1.95/$. The consensus forecast for the U.S. and Brazil inflation rates for the next one-year period was 2.6 percent and 20.0 percent, respectively. What would you have forecast the to be at around November 1, 2000?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...