The 7 causes of exchange rate movements
Exchange rates can influence stock prices so it is important for share investors to have an understanding on what causes exchange rate movements. Companies with overseas operations may be impacted positively or negatively depending on the direction on the exchange rates. Exchange rates can also influence the amount of overseas funds being invested in Australian shares. We discuss 7 causes of exchange rate movements below. 1.Inflation Countries with low inflation rates will have stronger exchange rates than countries with high …
