Is the yen expected to get stronger or weaker

Reference no: EM13266193

Suppose the spot and three-month forward rates for the yen are ¥85.14 and ¥84.61, respectively. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

(a) Is the yen expected to get stronger or weaker?

(b) What would you estimate is the difference between the inflation rates of the United States and Japan? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.

Reference no: EM13266193

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