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Let's assume that the annual interest rates for the US dollar and the euro are both 5%. What is the relationship between the current equilibrium

Let's assume that the annual interest rates for the US dollar and the euro are both 5%. What is the relationship between the current equilibrium exchange rate for $/ and the expected future $/ exchange rate? Suppose the interest rate in the UK increases to 10% annually, and the future $/ exchange rate is expected to remain at 1.52 euros per dollar. If the US interest rate remains unchanged, what would be the new equilibrium exchange rate for $/?

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