The current Swiss franc/euro rate is 1.5 francs per euro. Inflation rates are approximately 1% in Switzerland and between 1.8% and 2.2% in the various countries of the euro zone. One-year interest rates are 2% in Swiss francs and 3% in euros. What would be a natural forecast for the Swiss franc/euro exchange rate next year?

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The Answer of The current Swiss franc/euro rate is 1.5 francs per euro. Inflation rates are approximately 1% in Switzerland and between 1.8% and 2.2% in the various countries of the euro zone. One-year interest rates are 2% in Swiss francs and 3% in euros. What would be a natural forecast for the Swiss franc/euro exchange rate next year?

The Current Swiss Franc/euro Rate Is 1