If the spot exchange rate between the U.S. dollar and the Singapore dollar is $1 = SG$1.5266

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If the spot exchange rate between the U.S. dollar and the Singapore dollar is $1 = SG$1.5266 and the 3-month expected exchange rate is $1 = SG$1.5305, then what is the expected inflation relationship between the two countries?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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