In the econ section it seams like when calculting future expected exchange rates that the DOMESTIC Inflation or Risk Free rate are the denomonator and the Foriegn is the numerator (Eg. S1 = So (1+iFC)/(1+iDC)…F=S(1+rFC)/(1+rDC).
Now under Portfolio Management for expected rate is given by F = S(1+rDC)/(1+rFC).
I think theres something maybe I’m not understanding as to why its different. Can anyone help? Getting confused on this and can’t seem to make sense of it now.