2006-10-01 05:42:06 · 3 answers · asked by rajeev s 1 in Business & Finance ➔ Corporations
Direct impact on the countries interest rates. As interest rates go higher the value of currency decreases. As manufacturing output becomes more expensive so does GDP exported. When your commodities cost more to buy by another country they compensate by reducing the value of your currency.This impacts the value of the currency on the international market.
They are basically buying your currency to buy your products which is currency hedging. when your product is increasing in price they need to buy more currency and they want that currency at a reduced rate.
2006-10-01 06:08:17 · answer #1 · answered by r g 3 · 0⤊ 0⤋
The economies in the countries involved.
2006-10-01 13:48:49 · answer #2 · answered by Delta Charlie 4 · 0⤊ 0⤋
the total economic picture from day to day
2006-10-01 12:45:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋