Global economy changes a lot since Covid, some countries especially, in Turley, Exchange Rates floats a lot, the lira’s spiral has been staggering — it plummeted from roughly 8.5 to the dollar in late August to more than 13 to the dollar within a mere three months.
From a fundamental point of view, the main reason why the new crown epidemic affects the foreign exchange market is that the epidemic has changed the market’s relative expectations for future economic growth. Countries with a healthy economy can attract global capital inflows, and capital flows are an important factor affecting foreign exchange. When a certain region or country is hit hard by the epidemic, economic growth is expected to decline due to concerns that some economic activities will be blocked. In contrast, with the effective control of the epidemic and the gradual decline in new confirmed cases every day, the optimism of economic restart will dominate the market.