Covered interest rate parity relationship

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The Spot Rate (S0) for USD to Australian Dollars (AUD) is USD 0.87 to AUD 1.

The riskless rate of interest in the US for 3 months (RUS) is 0.2%. The riskness rate in Australia (Foreign Country) is 1.4%.

According to the Covered Interest Rate Parity relationship, what should be the 3-month Forward rate (F) of USD to AUD? (Note: Your answer should be the number of USD for AUD 1 in the 3-month Forward rate for USD to AUD.)

Reference no: EM132354870

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