What indicators are used in exchange rate forecasting?
Exchange rates are among the top factors that distinguish the health of a country's economy. Also known as a forex rate, the foreign exchange rate is the value of the currency of one nation in relation to another nation's currency.
How does inflation affect the exchange rate between two nations?
The rate of inflation in a country can have a major impact on the value of the country's currency and the 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 country's exchange rate.