The law of demand for U.S. dollars in the foreign exchange market refers to the relationship between the

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The law of demand for U.S. dollars in the foreign exchange market states that there is an inverse relationship between the value of the U.S. dollar (exchange rate) and the quantity of U.S. dollars demanded by the market. As the value of the U.S. dollar increases, fewer dollars are demanded, and as the value decreases, more dollars are demanded.

The Law of Demand for U