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What are the factors that affect the exchange rate in foreign exchange investment?
In foreign exchange investment transactions, the exchange rate fluctuates at any time, and the factors affecting its fluctuation are as follows:

political situation

Investors may find it incredible that the political situation has an impact on the exchange rate of foreign exchange investment. In fact, it has a great influence. If the situation is stable, then the exchange rate is also stable; If the situation is turbulent, the exchange rate will fall. So investors should pay more attention to the international political situation.

economic situation

The economic situation is the most important and key factor affecting the exchange rate. When investors observe the economic situation,

It is very important to mainly consider the level of national economic growth, balance of payments, inflation and so on.

Military dynamics

National military development will also affect the exchange rate of foreign exchange investment. War and turmoil will cause insecurity in a certain area, which will have a negative impact on the exchange rate of China in this area, but it will be beneficial to the exchange rate of China in areas far away from these events.

Government and central bank policies

The policies of the government and the central bank will directly affect the exchange rate of foreign exchange investment and also play a very important role in the exchange rate. The government's depreciation and appreciation of the currency, the rise and fall of the central bank's interest rate and the intervention of the foreign exchange market all play a decisive role.

Market psychology

The psychological expectation of foreign exchange investors also seriously affects the trend of foreign exchange investment exchange rate. If a currency appreciates or depreciates, the market will also form its own views, which will affect the exchange rate changes under certain conditions.