How do you calculate currency future price?

To calculate the future price of a currency, you typically use the formula for the forward exchange rate, which is based on the current spot rate adjusted for interest rate differentials between the two currencies. The formula is:

[ F = S \times \left( \frac{1 + r_d}{1 + r_f} \right) ]

where ( F ) is the future price, ( S ) is the current spot rate, ( r_d ) is the domestic interest rate, and ( r_f ) is the foreign interest rate. This approach assumes no arbitrage opportunities exist and reflects the cost of carry for holding the currencies.