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Suppose the 6-month (annualized) interest rates are 0.9% for JPY and 3.49% for AUD. The current spot rate is AUD/JPY = 72.41. For simplicity, assume

Suppose the 6-month (annualized) interest rates are 0.9% for JPY and 3.49% for AUD. The current spot rate is AUD/JPY = 72.41. For simplicity, assume that for 6 months, you earn half of the annualized interest rates.

What is the expected AUD/JPY spot exchange rate in 6-months as predicted by the Uncovered Interest Rate Parity (UIRP)?

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