When the foreign exchange market opens in the United States each morning, the opening exchange rate quotations will be based on the:

Question

When the foreign exchange market opens in the United States each morning, the opening exchange rate quotations will be based on the:​

Quizplus · Accepted Answer

The opening exchange rate quotations in the United States are based on the prevailing prices in locations where the foreign exchange markets are already open, such as Asia or Europe. These prices are established by market participants trading in those regions and are influenced by a variety of factors, including news events, economic data releases, and geopolitical developments. The closing prices in the United States or Canada, as well as any official rates set by central banks, are not likely to have a significant impact on the opening exchange rates in the United States.

When the Foreign Exchange Market Opens in the United States