What Are The Impacts Of Foreign Currency On The Capital Market Today?


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Stuti Ahuja answered
Foreign exchange deeply impacts on the capital trading market in every country. Its impact on the capital market of a particular country could be direct or indirect. Variations in foreign currency have a deep impact on equity, bonds, private property, manufacturing assets like machinery and/or any kind of investment which is accessible to foreign investors. Foreign currency rates also play a huge role in defining equity ownership in privately owned companies and real estate. Foreign currency also determines the import and export activities that a country overtakes. Through foreign currency, buying and selling of goods and services has been made easy which adds a lot to a country's economy. Banks from the different parts of the globe have currency contracts to control the exchange rate.

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