What should be the exchange rate five years from now


Question:

Currently, you can exchange 100 for $132.66. The inflation rate in Europe is expected to be 3.1 percent as compared to 3.6 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be 5 years from now?

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Finance Basics: What should be the exchange rate five years from now
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