On January 1, 1996, you are promoted to the position of general manager of the Indian Tiger Mutual Fund which manages approximately $125 million of equity investment on the Bombay Stock Exchange. Although the Indian rupee has been a relatively stable currency lately, you are concerned that the heightened pace of economic reform and the relaxation of exchange rate controls may put undue pressure on the exchange rate. Are your fears justified? Formulate your forecast for the value of the Indian rupee 3 and 12 months hence.