The implied rate is the difference between the spot interest rate and the interest rate for the forward or futures delivery date. For example, if the current U.S. dollar deposit rate is 1% for spot and 1.5% in one year’s time, the implied rate is the difference of 0.5%. Or, if the spot price for a currency is 1.050 and the futures contract price is 1.110, the difference of 5.71% is the implied interest rate.
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