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Foreign Currency PurchaseLast update: Wednesday 23rd of May 2012
If there is a slowing of a housing market, this means the sellers asking price will be less, and with the realization that a persons home is worth less, this results in a decrease in demand for a currency. The factors that follow may have a positive or negative affect on the economy. Again, poor economic conditions result in a decrease in business expansion, means a poor economy and a decrease in demand for the US dollar, and a drop in it's value. This is true whether you are talking about the degree of unemployment, degree of consumer spending, and extent of business expansion that is taking place in a country. High unemployment, decrease consumer spending, with a decrease in business expansion, means a poor economy and a decrease in demand for a currency, simply because a war drains the economy. Wars are expensive and must be paid by the taxpayer. If taxes increase, this results in less consumer spending. This has a negative affect on the economy. Again, poor economic conditions result in a lower
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