How Does Inflation Affect Foreign Exchange Rates?

Inflation of any country will affect that country's exchange rate. Simply because the influx of extra currency changes its value.  If the British Pound and the U.S. Dollar were 1 for 1 (i.e. 1 Pound for 1 Dollar) and the United States had a 50% inflation then the exchange rate would be 1.5 Dollars for 1 Pound because the inflation causes the dollar to lose value.  Whichever country goes through inflation, it will take more of that currency to purchase another.