How would you forecast the exchange rate

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As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is R$1.9/S. The consensus forecast for the U.S. and Brazil inflation rates for the next 1-year period is 2% and 10.0%, respectively. How would you forecast the exchange rate to be at around November1, 2000?

Reference no: EM131831377

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