If the forward rate is used to forecast exchange rates what


4 year annualized interest rate in the US = 9%

4 year annualized interest rate in Singapore =6%

Assume Interest Rate Parity holds

Singaporain dollar spot rate = $0.60

If the forward rate is used to forecast exchange rates, what will be the forecast for the Singapore dollar's spot rate in 4 years?

What percentage appreciation or depreciation does this forecast imply over the 4 year period?

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Financial Management: If the forward rate is used to forecast exchange rates what
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