Suppose the Mexican peso $($MXN$)$ interest rate and the Indian rupee $($INR$)$ interest rate are the same, $5$ percent per year. What is the relation between the current equilibrium MXN$/$INR exchange rate and its expected future level? Suppose the expected future MXN$/$INR exchange rate, $3\mathrm{.}40$ INR per Mexican peso, remains constant as India's interest rate rises to $10$ percent per year. If the Mexican interest rate also remains constant, what is the new equilibrium MXN$/$INR exchange rate?