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Factors affecting currency exchange rates

February 18, 2011 by Forex Market

The health of the economy of a country is determined by interest rates and inflation being the exchange rates of the currency one of the factors on which one can set to get an idea of the economic state of the country. This is due, inter alia, that the exchange rate plays an important role in international trade of the country, which is crucial in the open market today. Fluctuations in exchange rates affect the country’s trade relations with other countries. This is because …

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