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How Inflation Impacts Currency Exchange Rates

From markettraders.com

The sky-high level of inflation is the most prevailing issue all over the world these days, and it is on top of every investor’s mind. Moreover, inflation within the U.S. is sitting at a high level. Higher inflation could be problematic for both the economy and consumers on several counts. So, the Federal Reserve wants to tame it and it is planning to do so by its monetary policy measures. If the Fed continues to keep rates higher for longer, the rate at which it lends funds to other banks will remain higher. This could mean low borrowings from these banks and from the consumers, and it ultimately leads to less money ... (full story)

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