Suppose the annual interest rate is $2$ percent in

the United States and $4$ percent in Germany, and

the spot exchange rate is $$\frac{1\mathrm{.}60}{}$ and the $1-$

year forward rate is $$\frac{1\mathrm{.}58}{}.$ As more and more

investors engage in covered interest arbitrage,

what adjustment will occur to make covered

interest arbitrage go away?