How could we project exchange rates, Financial Management

How could we project exchange rates in order to be able to forecast exchange differences?

If someone knew how to predict exchange rates, they would be a millionaire and would not lose time on forecasting exchange differences! There is no formula that could forecast exchange rates reasonably well. Actually, assume a constant exchange rate leads to bad forecasts, but is still better than assuming the exchange rate would follow the inflation differential or the interest rates differential.

 

Posted Date: 8/17/2013 2:55:14 AM | Location : United States







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