Using the information below, what will be the spot rate of the Singapore dollar (USD SGD) in three years based on the International Fisher Effect ( UIRP) Show your work Spot exchange rate of the Singapore dollar (USD SGD) 0 70 Three year annualized interest rate in the US (i e , annual rate expected each year over the following three years), in 4 46 Three year annualized interest rate in Singapore ( ) 1 81

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Question: Using the information below, what will be the spot rate of the Singapore dollar (USD/SGD) in three years based on the International Fisher Effect (=UIRP)?

Using the information below, what will be the spot rate of the Singapore dollar (USD/SGD) in three years based on the International Fisher Effect (=UIRP)? Show your work

Spot exchange rate of the Singapore dollar (USD/SGD)	0.70
Three-year annualized interest rate in the US (i.e., annual rate expected each year over the following three years), in %	4.46
Three-year annualized interest rate in Singapore (%)	1.81

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