36 Spot versus Forward Rates Suppose the spot and three-month forward rates for the Indian rupee are
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36 Spot versus Forward Rates Suppose the spot and three-month forward rates for the Indian rupee are R68.81/€ and R61.8/€, respectively.
(a) Is the rupee expected to get stronger or weaker?
(b) What would you estimate is the difference between the inflation rates of the Eurozone and India?
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