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How does a country balance of payments affect the value of its currency?
can cause fluctuations in the exchange rate between its currency and foreign currencies.
Does inflation affect exchange rates?
Simply put, low inflation rates means higher demand in market including demand from foreign markets. This is translated in the price quoted for imported items. Thus, as import is increased so does money outflow. This means more foreign currency are needed (bought) to buy imported items and relatively the value of local currency rates will be depreciated.
How does a republic affect currency form?
The currency of a republic form of government has no affect on it. Currency issues involve economics for the most part.
How did foreign affect Ming china?
How did foreign trade affect Ming china
How does increased depreciation expenses affect tax-related cash flows?
depreciation is a non cash item which have no physical outflow ... when depreciation is applied on tax cash flow it saves tax resulting in decrease in cash outflow
How relatively high interest rates affect currency values?
What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".
What are the factors that affect currency put option and currency call option premiums?
go to yahoo stocks
How fast will the rocket go if you were traveling to the moon?
Destination does not affect velocity.
Was the age of exploration dangerous and how did pirates affect it?
the pirates can not travel well to their destination
How does the foreign exchange affect the international business?
i dont no
How does the interest rate in a country affect equilibrium currency prices?
If a country raises its interest rates, its currency prices will strengthen because the higher interest rates attract more foreign investors. This answer sounds exactly logical as I think about it, yet, in economics books, under the uncovered interest rate parity model, a country with a higher interest rate should expect its currency to depreciate. I would agree with this proposition in the long run an expensive currency will hurt exports... but in the very short run... let's say once the CB declaires a rise in interest rate, by how much should one expect the currency to appreciate? is there any formula for this?
What geographic factors affect torism?
Climate: nice weather brings tourist to your destination
