Question
The expected inflation rate until the end of next year, 2019, is 3% in the US, and 15% in India, respectively. The current spot exchange
The expected inflation rate until the end of next year, 2019, is 3% in the US, and 15% in India, respectively. The current spot exchange rate as of November 26, 2018, between India rupee (IR) and the US dollar is IR70.8/$.
What will be the expected exchange rate between India rupee (IR) and the US dollar at the end of 2019?
Why?
Which theory of the FX rate determination do you use for your forecasting as above?
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Financial Trading And Investing
Authors: John Teall
3rd Edition
0323909558, 978-0323909556
