Formula / Rule
F = S × (1 + r_d) / (1 + r_f)
Memory aid
Higher-yielding currency trades at forward discount.
⚠ Most common mistake
Using simple difference (r_d − r_f) on the spot — only works as approximation, exact form is multiplicative.
Go deeper
Need more than a one-liner? Pick a view — first time generates with AI, after that it’s instant for everyone.