The Fisher effect (Chapter 6) suggests that nominal interest rates differ between countries because of differences in the respective rates of inflation. According to the Fisher effect and your examination of the one-year Eurocurrency interest rates presented in Exhibit 11.3, order the currencies from the eight countries from highest to lowest in terms of the size of the inflation premium embedded in the nominal ask interest rates for June 5, 2013.

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EXHIBIT 11.3 Euro Danish Krone Sterling Swiss Franc Canadian Dollar US Dollar Japanese Yen Singapore $ Eurocurrency Interest Rate Quotations: June 5, 2013 7 Days' Notice 0.20 to 0.15 -0.14 to -0.18 0.52 to 0.42 0.05 to -0.15 1.12 to 0.97 0.31 to 0.26 0.32 to 0.07 Three Months 0.25 to 0.05 -0.11 to -0.12 0.64 to 0.54 0.07 to -0.13 1.29 to 1.14 0.41 to 0.24 0.35 to 0.10 0.36 to 0.26 0.20 to 0.05 Short Term 0.17 to 0.07 0.02 to 0.18 0.51 to 0.41 0.05 to 0.15 0.98 to 0.94 0.14 to 0.07 0.32 to 0.07 0.17 to 0.02 One Month 0.11 to 0.01 1.02 to -0.18 0.53 to 0.43 0.05 to -0.15 1.16 to 1.01 0.29 to 0.19 0.18 to 0.03 0.32 to 0.22 Note: Short-term rates are call for the U.S. dollar and yen, others: two days' notice. Source: Financial Times, June 6, 2013, p. 19. Six Months 0.32 to 0.17 0.01 to -0.04 0.73 to 0.53 0.16 to -0.04 1.41 to 1.26 0.53 to 0.43 0.35 to 0.15 0.44 to 0.19 One Year 0.55 to 0.35 0.19 to 0.14 0.92 to 0.82 0.29 to 0.09 1.63 to 1.48 0.71 to 0.52 0.29 to 0.17 0.56 to 0.31