The new JPY-USD exchange rate at the end of the year

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The inflation rate in U.S. is 2.2%, and the inflation rate in Japan is 8.5%. The current exchange rate is 81 JPY/USD. If the purchasing power parity holds, what should be the new JPY/USD exchange rate at the end of the year?

Note that an indirect exchange rate is provided.

Reference no: EM132047263

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