currency fluctuations

What Is Pros And Cons Of Fixed Exchange Rate Regime?

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What Is Pros And Cons Of Fixed Exchange Rate Regime? By pegging its currency, a country can gain comparative trading advantages while protecting its own economic interests. A pegged rate, or fixed exchange rate, can keep a country’s exchange rate low, helping with exports. Conversely, pegged rates can sometimes lead to higher long-term inflation. What

What Factors Affect Currency Trading?

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What Factors Affect Currency Trading? Inflation rates. Inflation rates impact a country’s currency value. … Interest rates. Exchange rates, interest rates and inflation rates are all interconnected. … Monetary policy and economic performance. … Tourism. … Geopolitical stability. … Import and export value. What causes currency fluctuations? Simply put, currencies fluctuate based on supply and