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Interest Rate Parity and Forward Discount or Premium of the Dollar Vis a Vis the Euro

Question

In early 2001, US interest rates went from being higher than euro rates to lower than euro rates. What does interest rate parity tell us must have happened to the forward discount or premium of the dollar vis a vis the euro?

Summary

This question belongs to finance and discusses about interest rate parity and forward discount or premium of the dollar vis a vis the euro.

Total word count: 116

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Interest Rate Parity and Forward Discount or Premium of the Dollar Vis a Vis the Euro

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