What would you forecast the exchange rate

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As of December 1, 2016, the exchange rate between the Brazilian real and U.S. dollar is USD/BRL = 1.85. The consensus forecast for the U.S. and Brazil inflation rates for the next 1-year period are 2.5% and 20.0%, respectively. What would you forecast the exchange rate to be at around December 1, 2017?

Reference no: EM131820567

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