Question

Mention the major influencing factors of foreign exchange markets.

Answer 1

Explanation:

8 Key Factors that Affect Foreign Exchange Rates

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

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

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

Government Debt. ...

Terms of Trade. ...

Political Stability & Performance. ...

Recession. ...

Speculation.

Answer 2

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

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

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

Government Debt. ...

Terms of Trade. ...

Political Stability & Performance. ...

Recession. ...

Speculation.