If one day the dollar is trading at 1.00 euro per dollar and the next day the exchange rate is 0.88 euros per dollar, one possible factor that might have led to this change is

Question

Quizplus · Accepted Answer

When the Fed sells dollars, it increases the supply of dollars in the foreign exchange market, leading to a depreciation of the dollar relative to the euro, which would result in fewer euros per dollar.

If One Day the Dollar Is Trading at 1