How can political events and news affect currency exchange rates?
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Political events and news can significantly impact currency exchange rates, especially if they involve geopolitical tensions, elections, or economic policy changes.
Political events and news can impact currency exchange rates by creating uncertainty or boosting confidence. Political instability, elections, trade disputes, and policy changes can either weaken or strengthen a currency depending on investor reactions and economic outlook.
It can negatively affect a currency's price due to increased risk and uncertainty, deterring investment.