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In the Spot Market,    $ 1=J.Yen 108.7   i.e,    $/Japanese Yen=108.7 If the Inflation rates in the...

In the Spot Market,    $ 1=J.Yen 108.7   i.e,    $/Japanese Yen=108.7

If the Inflation rates in the USA and JAPAN are projected as 1,6% and 0.2% respectively, calculate how many J.Yens you would need to get 1$ after 1 years time, and write which currency has Re-valued and which one has De-valued.

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