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Say, on November 25, 2021, the exchange rate between the USD and the Mexican Peso was USDMXN20.0500. The consensus forecast for the U.S. and Mexico
Say, on November 25, 2021, the exchange rate between the USD and the Mexican Peso was USDMXN20.0500. The consensus forecast for the U.S. and Mexico inflation rates for the next 1-year period is 2.24% and 2.78%, respectively.
What would you forecast the USDMXN exchange rate to be at around November 25, 2022?
Select one of the following that is nearest to your calculation (may differ very slightly due to rounding):
Group of answer choices
USDMXN19.0227
USDMXN19.9423
USDMXN20.1583
USDMXN21.1327
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