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Currency prices are primarily influenced by factors such as interest rates, inflation, economic indicators, and political stability. Higher interest rates tend to attract foreign investment, boosting demand for a currency, while lower rates can weaken it. Inflation also plays a key role, as currencies from countries with lower inflation rates tend to strengthen due to increased purchasing power. Economic indicators, such as GDP growth, employment figures, and trade balances, reflect a nation's economic health and can impact currency value. Additionally, political stability and geopolitical events influence investor confidence, with uncertainty often leading to a weaker currency. Central bank policies, market sentiment, and global events like natural disasters or pandemics also affect currency fluctuations.

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Jacob

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