Highest Return?
It depends: expected exchange rate in 1yr will alter the picture
- A deposit of E1 today will cost $0.90
- A year from now we’ll have E1.05
- Expected xrate 1$/E -> $1.05
- Expected rate of return (1.05-0.9)/0.9=0.15/0.9=0.167=16.7%
- Better off in Euro