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Inflation – Inflation in each country, and inflationary expectations, affect currency values. What good is a 10% short-term return in some country if inflation is running 15%?

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Inflation – Inflation in each country, and inflationary expectations, affect currency values. What good is a 10% short-term return in some country if inflation is running 15%?

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10

• Political factors – Taxes, stability, whatever affects the international trade of a country, or the perception of “soundness” of the currency affect its valuation.

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