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During periods of international geopolitical tension or economic crisis, there is often a flight to quality. In terms of the forex market, that basically means
During periods of international geopolitical tension or economic crisis, there is often a flight to quality. In terms of the forex market, that basically means that investors rush to convert their assets into dollars, or dollar-denominated assets.
Using the stacked figures showing both the U.S. money market and the foreign exchange market, show the likely effect on the dollar/euro exchange rate.
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