Exchange rate between the brazilian real and us dollar

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Reference no: EM131595443

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$2.2807/$

R$3.6673/$

R$3.1199/$

R$2.6675/$

Reference no: EM131595443

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