If a foreign currency is selling at a forward premium, the foreign exchange market believes that the currency will depreciate over time.

Name: If a foreign currency is selling at a forward premium, the foreign exchange market believes that the currency will depreciate over time.
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Quizplus · Accepted Answer

A forward premium on a currency implies that the market expects the currency to appreciate, not depreciate, over time relative to the currency it is compared against.

If a Foreign Currency Is Selling at a Forward Premium