Cryptocurrency Q&A
How do exchange rates affect exchange rates?
How do exchange rates affect exchange rates?
Daniele
Tue Jan 14 2025
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7 answers
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I'm trying to understand how exchange rates can influence or affect other exchange rates. Is there a relationship or correlation between different currency pairs, and if so, how does a change in one exchange rate impact the others?
7 answers
SsamziegangSerenade
Thu Jan 16 2025
When investors sell their currency, it leads to an augmentation in the supply on the open market.
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CryptoWanderer
Thu Jan 16 2025
This surge in supply subsequently causes a decrease in the currency's value.
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Valentino
Wed Jan 15 2025
Besides supply and demand dynamics, exchange rates are also influenced by interest rates.
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ChristopherWilson
Wed Jan 15 2025
The diminishing value attracts the attention of more investors who become aware of the price drop.
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Bianca
Wed Jan 15 2025
In response to the decreasing value, these investors rush to sell their holdings as well.
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