If inflation is expected to be higher in the U.S.than in Mexico,then the peso is forecasted to depreciate against the dollar.

Name: If inflation is expected to be higher in the U.S.than in Mexico,then the peso is forecasted to depreciate against the dollar.
Brand: Quizplus
Rating: 5.0 (34 reviews)

Question

Quizplus · Accepted Answer

If inflation is higher in the U.S. than in Mexico, the U.S. dollar is expected to depreciate against the peso, not the other way around. Higher inflation in a country typically leads to a depreciation of its currency relative to others.

If Inflation Is Expected to Be Higher in the U