It is not very difficult to calculate exchange rates. Exporters and importers are interested in calculating exchange rates.
Posts tagged as “foreign exchange market”
If domestic interest rates decrease, then the domestic currency’s exchange rate is to depreciate against other currencies.
If domestic interest rates increase, then the domestic currency’s exchange rate is to appreciate against other currencies.
Changes in the exchange rate of the currency can affect the whole economy because exchange rate stability guarantees the success of international trade.