A country until now has a fixed exchange rate and its currency is undervalued, now the Central Bank is about to float its currency. If currency traders are of this then:

1. both the demand for and the supply of the currency decreases
2. the demand for the currency increases and the supply decreases
3. the demand for the currency decreases and the supply increases
4. both the demand for and the supply of the currency increase
5. the supply of and the demand for the currency will not change.