Question

Why does demand for foreign exchange arise for speculative activities?​

Answer 1

Answer:

When price of a foreign currency falls, imports from that, foreign, country become cheaper. So, imports increase and hence, the demand for foreign currency rises. ... When price of a foreign currency falls, its demand rises as more people want to make gains from speculative activities.

Answer 2

Answer:

When price of a foreign currency falls, imports from that, foreign, country become cheaper. So, imports increase and hence, the demand for foreign currency rises. ... When price of a foreign currency falls, its demand rises as more people want to make gains from speculative activities.

hope its help you