• Sangeetha.G

ABSTRACT The dynamics of global financial markets, the factors that determine exchange rates, and the effects of currency fluctuations on investment and trade are the primary topics of this study. In today's interconnected world, where economies are increasingly dependent on one another and capital flows freely across borders, having a solid understanding of how international financial markets work is essential. The dynamics of global financial markets, such as stock exchanges, bond markets, and foreign exchange markets, are the subject of the study's initial analysis. It investigates the factors that have an impact on these markets, such as investor sentiment, economic indicators, monetary policies, and political events. For investors, policymakers, and financial institutions to effectively manage risks and make informed decisions, a thorough understanding of these dynamics is essential. The factors that influence exchange rates are then the subject of the study. Because they determine the relative prices of goods and services between nations, exchange rates are an important factor in international investment and trade. The balance of payments approach, purchasing power parity, and other theories and models used to explain changes in exchange rates are all examined in this paper. It also takes into account how changes in the exchange rate are influenced by things like inflation, interest rates, government policies, and market expectations. In addition, the study investigates the effects of currency fluctuations on investment and trade. The competitiveness of imports and exports, as well as the profitability of foreign investments, can be significantly impacted by changes in exchange rates. The balance of trade, export competitiveness, import costs, and currency movements are all examined in this paper. It additionally investigates the impacts of swapping scale unpredictability on unfamiliar direct venture, portfolio speculation, and cross-line capital streams. This study's findings contribute to a deeper comprehension of the interconnectedness and complexity of international financial markets. The study emphasizes the significance of taking into account both market dynamics and macroeconomic factors when evaluating the effects of changes in exchange rates on investment and trade. These insights can be used by policymakers to create fiscal and monetary policies that foster stability and long-term economic growth. To better manage currency risks and increase their competitiveness in the global market, investors and businesses can make informed decisions. Overall, this study sheds light on the shifting dynamics of global financial markets and the intricate connection between investment, trade, and exchange rates.

KEYWORDS: Currency, Fluctuation, Investmnent , Impact , Growth.

"“An exploratory study on the impact of currency fluctuations on trade and investment.”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 6, page no.i537-i557, June-2023, Available :http://www.jetir.org/papers/JETIR2306856.pdf

"“An exploratory study on the impact of currency fluctuations on trade and investment.”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 6, page no. ppi537-i557, June-2023, Available at : http://www.jetir.org/papers/JETIR2306856.pdf