Suppose you observe that 90-day interest rate across the eurozone is 5%, while the interest rate in the U.S. over the same time period is 2% Further, the spot rate and the 90-day forward rate on the euro are both $1.25. You have $700,000 that you wish to use in order to engage in covered interest arbitrage. It many individuals recognize the same arbitrage opportunity, and sell euros forward just as you did, this would place pressure on the forward rate. This would continue until the on the forward rate (relative to the current spot rate) was approximately