Inflation in the U.S. is expected to be 2.5%. Inflation in Argentina is expected to by 9%. What is the expected Argentinian peso exchange rate in 1-year if the current spot rate (USDARS) is P57.50? What is the expected appreciation (or depreciation) of the peso?

2. Inflation in the U.S. is expected to be 2.5%. Inflation in Argentina is expected to by 9%. What is the expected Argentinian peso exchange rate in 1-year if the current spot rate (USDARS) is P57.50? What is the expected appreciation (or depreciation) of the peso? US Inflation 2.50% 9.00% AR Inflation Spot 57.50 New Rate? ???? Appreciation