As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is R$1.99 per $. The consensus forecast f U.S. and Brazil inflation rates for the next 1-year period is 2.7% and 20%, respectively. What would you forecast the exchange ra at around November 1, 2000? Required: The expected Brazilian real exchange rate in one year: Brazilian reals per 1 USD. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Exchange rate
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- On November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is R$1.95/$. The consensus forecast for the U.S. and Brazil inflation rates for the next 3-year period is 2.6% and 20.0% per year, respectively. What would you forecast the exchange rate to be at around November 1, 2002? R$3.6673/$ O R$3.1199/$ O R$2.6675/$ O R$2.2807/$The current exchange rate is $1.19 / Euro. The expected inflation rate for the next year in the U.S. is 0.62% while it is 0.79% in the EU. What would be the expected exchange rate in one year’s time if Purchasing Power Parity holds? Provide your answer till 4 digits after the decimal point. Is the Euro expected to appreciate or depreciate?Assume the current U.S. dollar-yen spot rate is $0.0088/¥. Further, the current nominal 1-year rate of return in Japan is -0.112% and 0.14% in the United States. What is the estimated forward exchange rate for 270 days? Use maximal decimals in your calculations. ¥113.42/$ ¥113.85/$ ¥113.64/$ ¥113.35/$
- The current spot exchange rate is HUF262/$1.00. Long-run inflation in Hungary is estimated at 10 percent annually and 3 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange rate should one forecast five years into the future? (Round your answer to 2 decimal places.Suppose the current exchange rate for the Polish zloty is zl 2.88. The expected exchange rate in three years is zl 2.96. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in annual inflation rates %The nominal exchange rate between the Australian Dollar and the Euro in equilibrium is 0.5(1 AUD buys 0.5 Euros) and both countries' interest rates are currently at 2% per annum. The interest rate in Australia is raised to 4% per annum for 2 years, after which it returns to 2% per annum. calculate the exchange rate at the time when the interest rate is raised? Use a graph to show the exchange rate over time.
- The current spot exchange rate is HUF254 per $1.00. Long-run inflation in Hungary is estimated at 10 percent annually and 3 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange should one forecast five years into the future? Note: Round your answer to 2 decimal places.Use the information below to answer the following questions. Currency per U.S. $ 1.2380 1.2353 Australia dollar 6-months forward Japan Yen 6-months forward U.K. Pound 6-months forward 100.3600 100.0200 .6789 .6784 Suppose interest rate parity holds, and the current six month risk-free rate in the United States is 5 percent. Use the approximate interest rate parity equation to answer the following questions. a. What must the six-month risk-free rate be in Australia? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Australian risk-free rate b. Japanese risk-free rate c. Great Britain risk-free rate c. What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % % %Today's spot exchange rate: 1 euro = $1.25.US interest rate (home interest rate) is 7%.EU interest rate (foreign interest rate) is 10%.a) If the IRP (Interest rate parity) holds, what should the forward exchange rate be today?b) Assume that today, you invest $500 in the EU market for one year and at the same time, enter a currency forward contract to sell euro in a year at the forward rate from part a). If today's spot exchange rate is: 1 euro=$1.32 instead of $1.25, show how much profits or losses you make next year.
- Currently, you can exchange $1 for SF 1.14. Assume that the average inflation rate in the U.S. over the next two years will be 2.5 percent annually as compared to 3 percent in Switzerland. Based on this information and relative purchasing power parity, which one of the following assumptions can you make regarding the next two years? A. The Swiss franc will appreciate against all currencies. B. The Swiss franc will appreciate against the U.S. dollar. C. The U.S. dollar will appreciate against all currencies. D. The U.S. dollar will appreciate against the Swiss franc. E. Both the U.S. dollar and the Swiss franc will appreciate against all other currencies.As of March 18, 2009, the exchange rate between the Turkish Lira and U.S. dollar is YTL1.70/$. The consensus forecast for the U.S. and Turkey inflation rates for the next 1-year period is 1.3% and 8.5%, respectively. How would you forecast the exchange rate to be at around March 18, 2010? What is the expected rate of change in exchange rate? Using the approximation formula Using the exact formula 2. If the nine-month forward rate F9(Y/$) = 82, and the inflation rate in the U.S. and Japan are 1.6% and -0.8% respectively, what should be S(Y/$)? 3. If the 3-month CD rate is 1.2% (annual) in Thailand and if the expected annual inflation is 5.7%, what is the real annual interest rate? 4. If the International Fisher Effect holds, and if the following information is given, what should be S(MYD/SGD)? The expected inflation in Malaysia is 4% The expected inflation in Singapore is 3% F(SGD/MYD) is 0.3 SGD is Singapore dollar and MYD is Malaysian RinggitThe current spot rate between the pound and dollar is £.7562/$. The expected inflation rate in the U.S is 2.47 percent and the expected inflation rate in the U.K. is 3.03 percent. Assuming relative purchasing power parity holds, what will the exchange rate be next year?