Question

Explain five factors , among others , affecting supply and demand in the foreign exchange market？​

Answer 1

Answer:

1. Inflation Rates. Changes in market inflation cause changes in currency exchange rates. ...

2. Interest Rates. Changes in interest rate affect currency value and dollar exchange rate. ...

3. Country's Current Account / Balance of Payments. ...

4. Government Debt. ...

5. Terms of Trade. ...

6. Political Stability & Performance. ...

7. Recession. ...

8. Speculation.