Forex Calender

Tuesday, 5 July 2016

How and why does the demand and supply of a currency increase and decrease?

How and why does the demand and supply of a currency increase and decrease?


There are several reasons. A rise in export earnings of a country increases foreign exchange supply. A rise in imports increases demand. These are the objective reasons, but there are many subjective reasons too. Some of the subjective reasons are: directional viewpoints of market participants, expectations of national economic performance, confidence in a country's economy and so on.

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