What do currency speculators look for when considering buying a currency?
October 25th, 2010
Based on what I’ve learned in Macroeconomics, it seems like it would make sense if someone bought the currency of a high exporting country. There is less of this country’s currency floating around the world market and thus it will not depreciate in value as much as say the dollar because we run a trade deficit. Am a right for thinking this? Also, would a currency with a low inflation rate also be a good option for earning a profit? Besides these two things, what are other factors that are considered by currency speculators?
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