Nominal interest rates in India are 7%, while nominal interest rates in the UK are 5%. The spot rate for the Indian rupee (INR) is £0.120. According to the international Fisher effect (IFE), the rupee should adjust to a new level (to the nearest £0.001) of:

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The Answer of Nominal interest rates in India are 7%, while nominal interest rates in the UK are 5%. The spot rate for the Indian rupee (INR) is £0.120. According to the international Fisher effect (IFE), the rupee should adjust to a new level (to the nearest £0.001) of:

Nominal Interest Rates in India Are 7%, While Nominal Interest