Internal, regional, and international political conditions and events can have a profoung effect on currency markets.
All exchange rates are susceptible to political instability and anticipations and about the new ruling party.Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive/negative interest in a neighboring country and, in the process, affect its currency.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment