Interested to Buy Any Domain ? << Click Here >> for more details...
What is the relation between equity markets and Re. vs
Dollar movement?
- 1 Answers
- 4721 Views
- I also Faced
- E-Mail Answers
Answer Posted / akhilesh mishra (accman insitu
The equity market can impact the currency market in many different ways. For example, if a strong stock market rally happens in the U.S., with the Dow and the Nasdaq registering impressive gains, we are likely to see a large influx of foreign money into the U.S., as international investors rush in to join the party. This influx of money would be very positive for the U.S. dollar, because in order to participate in the equity market rally, foreign investors would have to sell their own domestic currency and purchase U.S. dollars. The opposite also holds true: if the stock market in the U.S. is doing poorly, foreign investors will most likely rush to sell their U.S. equity holdings and then reconvert the U.S. dollars into their domestic currency - which would have a substantially negative impact on the greenback. This logic can be applied to all the other currencies and equity markets around the world. It is also the most basic usage of equity market flows to trade FX.
| Is This Answer Correct ? | 3 Yes | 1 No |
Post New Answer View All Answers
What is RBI's role in economy?
What are extends?
What is a Limited company?
What is the difference between nationalized and private banks?
Explain Openpages Capital Modeling?
What is the importance of capitalization?
any one can explain the Dealer Management in the automobolie company?
How will you define public expenditure?
What are current liabilities and provisions?
What is debt to GDP ratio of a country?
What are the assets have stopped giving income to a bank.
What causes Sub- prime crisis?
Which act allows the bank and financial institutions to auction the properties when borrower fails to repay the loans?
What Is Managerial Accounting?
What is Prime Lending Rate?
