Explain in a paragraph, There is speculation that the U.S. will
experience higher relative inflation rates...
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Explain in a paragraph, There is speculation that the U.S. willexperience higher relative inflation rates over the following 24months or longer. Explain fully how this would influence the USD inforeign exchange markets. Would the dollar be stronger?
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The rate of inflation in a country can have a major impact on the value of the country s currency and rates of foreign exchange it has with the currencies of other nations However inflation is just one factor among many that combine to influence a countrys exchange rate Inflation is more likely to have
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