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What would be the forecast value of the Indian Rupee

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Reference no: EM133009098

Question - A US based MNC, uses purchasing power parity to forecast the value of the Indian Rupee. The spot rate is $0.015. Inflation in USA is expected to be 3.14% during the next year, while inflation in India is projected to be 2.36%. What would be the forecast value of the Indian Rupee one year from now?

a. 0.0179

b. 0.0199

c. 0.0171

d. 0.0151

Reference no: EM133009098

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