Why does demand foreign exchange arise speculative activities? (2024)

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Demand for foreign exchange arises when people want to speculate on the value of foreign currency. Speculators demand foreign currency in the present period with the aim of selling it in future at higher prices. For example, Manish purchases 1,000US atRs. 50$ per dollar with the expectation of selling the dollars at higher prices.

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Why does demand foreign exchange arise speculative activities? (2024)
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