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Current spot exchange rate

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Suppose that the South African interest rate is 4% and the U.S. interest rate is 6%. If the expected future spot exchange rate one year from now is 6.05 Rand per US dollar and uncovered interest rate parity holds, what must the current spot exchange rate (number of Rands per Dollar) be in order to clear the foreign exchange market?

Reference no: EM133075664

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