What would you forecast the exchange rate

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As of March 1, 2015, the exchange rate between the Brazilian real and U.S. dollar is R$3.19/$. Assume that the consensus forecast for the U.S. and Brazil inflation rates for the next 1-year period is 2.0% and 20.0%, respectively. What would you forecast the exchange rate to be at around March 1, 2016?

Reference no: EM13730438

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