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The current USD/AUD spot rate is 1.26. You also know that the inflation rates in Australia and the US are 2.14% and 3.7%, respectively. You

The current USD/AUD spot rate is 1.26. You also know that the inflation rates in Australia and the US are 2.14% and 3.7%, respectively. You downloaded data from Factset and found that the long run interest rates in Australia and the US are 0.85% and 0.4%, respectively. According to relative PPP, what is the expected spot rate 4 months from now?

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