The U.S.demand for foreign currency arises from speculation and the

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The demand for foreign currency arises from the U.S. demand for foreign goods, services, and financial assets. When U.S. consumers, businesses, or investors want to buy foreign goods, or invest in foreign assets, they need to exchange U.S. dollars for foreign currency. This creates a demand for foreign currency. Speculation can also impact the demand for foreign currency, but it is not the primary driver of demand.

The USDemand for Foreign Currency Arises from Speculation and the