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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Foreign exhange rates
Kindly explain how capital nature transactions influence Fx rates in terms of supply and demand
Just as with everything, then if demand for a currency increases then the price of the currency (the exchange rate) will increase.
If everyone is buying flowers for Valentine’s Day, then the price of flowers increases. The same thing happens with currencies 🙂
