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Suppose that interest rates in the US and South Africa are 5% and 10% respectively. If interest rates in the US are expected to decrease
"Suppose that interest rates in the US and South Africa are 5% and 10% respectively. If interest rates in the US are expected to decrease to 3%p.a, will there be an appreciation or a depreciation of the South African Rand and what will the adjusted USD/ZAR exchange rate be, if the current spot exchange rate is 14.00ZAR?"
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