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changes in exchange rates

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What factors cause changes in exchange rates? How do these factors cause a currency to appreciate or depreciate? What impact would a depreciating currency have on the current account balance?

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ANSWERS
NOTE: IN the OTA's own words in accordance with BM rules

First, the exchange rates of a currency relative to another currency depend on several factors. These factors include the interest rate of the country relative to another, expected future ...

Solution Summary

A brief overview of causes for changes in exchange rates is presented.

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