Hi everyone,
I am right now in Argentina doing an exchange semester as part of my master in Finance. I would like to Long this pair (as I think that the inflation here is too high compared to the rise of the USD vs the ARS).
However, I had a question. The USD is regularly going up vs the ARS. Being pretty new to forex, I wanted to know if there was a way to lose money if I long the pair and it goes up.
Let’s say the pair goes up only 2% on the year but the differential of interest rates between USD and ARS is 10%, do i lose about 8% ?
Thank you