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Stock Exchange Prices

Stock Exchange PricesWhat is the effect of changes in stock market indexes on foreign exchange rates?

How does an increase in the overall index affect stock prices and a decline also affected.

If there is an effect, I think it should be restricted.

exchange is determined by the flow of money entering and leaving a country and there are many factors, including the balance of payments, the perceived value of real estate, at savings of citizens, and government fiscal policy.

If there is no effect, so I expect a growing market index market to attract foreign capital into stocks, thus increasing the demand for money and help raise the level of the currency. U.S. Fed Chairman Bernanke may be trying to do.

Best of success.

Posted on January 21, 2010.
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