Considering the U.S. Federal Reserve Board announced that U.S. interest rates will stay low through mid-2014, analyze how this will affect the foreign exchange derivatives market. Suggest whether or not you agree with this strategy. Provide support for your rationale.

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Ans The first reason central banks intervene is to stabilize fluctuations in the exchange rate International trade and investment decisions are much more difficult to make if the exchange rate value i... View the full answer