forecast errors from forward rates assume that interest rate parity exists one year 1555400

Forecast Errors from Forward Rates Assume that interest rate parity exists. One year ago, the spot rate of the euro was $1.40 and the spot rate of the Japanese yen was $.01. At that time, the 1-year interest rate of the euro and Japanese yen was 3 percent and the 1-year U.S. interest rate was 7 percent. One year ago, you used the 1-year forward rate of the euro to derive a forecast of the future spot rate of the euro and the yen 1 year ahead. Today, the spot rate of the euro is $1.39, while the spot rate of the yen is $.009. Which currency did you forecast more accurately?