Currency markets, also known as foreign exchange markets or forex markets, refer to the global decentralized marketplace where currencies are traded. This market determines the exchange rates of different currencies and facilitates the conversion of one currency into another. Transactions in currency markets can involve the buying, selling, or exchanging of currencies at agreed prices, and they occur 24 hours a day due to the geographical distribution of participants. The primary participants in currency markets include banks, financial institutions, corporations, governments, and individual traders. Currency markets play a crucial role in global trade and investment, allowing for the effective transfer of capital and the management of currency risks associated with international transactions. The trading is conducted over-the-counter (OTC), meaning that transactions occur directly between parties, typically facilitated by electronic trading platforms or through brokers. Trading in the currency markets can be influenced by various factors, including interest rates, economic indicators, political stability, and market sentiment.
The U.S. dollar and yen fluctuated around 150.10 yen, highlighting a delicate balance influenced by interest rate expectations in Japan and the U.S. Exchange rate movements demonstrated a subtle but…