When central banks increase interest rates, exchange rates can be affected. In particular, the home...
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When central banks increase interest rates, exchange rates can be affected. In particular, the home currency tends to be strengthened. That suggests that as the Federal Reserve increases interest rates in the U.S., the U.S. dollar should become stronger against other currencies. To what extent will the Federal Reserves continuing to raise interest rates in the U.S. affect banks exchange rate risk? Will the effect be similar for all banks?
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