The US dollar (USD) to Thai baht (THB) spot exchange rate was 100 USD = 3231.78 THB in September 2018. By January 2019 it had moved to 100 USD = 3118.74 THB. The 30-day forward rate then was 100 USD = 3198.70 THB. i. Calculate the appreciation / depreciation of the THB versus the USD. Did the THB appreciate or depreciate against the USD? ii. What was the interest rate differential between the two currencies in January 2019?

i. Show calculation for appreciation/depreciation: Write answer to question here:

ii. Explain logic for your answer here: