What are the factors that influence the exchange rate between USD and JPY in the digital currency market?

1 answers

• Dec 30, 2021 · 3 years ago
  At BYDFi, we understand that the exchange rate between USD and JPY in the digital currency market is influenced by various factors. These factors include market liquidity, economic indicators, central bank policies, and investor sentiment. Market liquidity refers to the ease with which a digital currency can be bought or sold without causing significant price movements. Economic indicators, such as GDP growth, inflation rates, and employment data, provide insights into the overall health of the economy and can impact the exchange rate. Central bank policies, such as interest rate decisions and quantitative easing measures, can also influence the exchange rate. Lastly, investor sentiment plays a crucial role in determining the demand for different currencies and can lead to fluctuations in the exchange rate between USD and JPY.
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