When one currency buys less of another currency in the forward market than it does in the spot market,we say that it is trading at

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When a currency buys less of another currency in the forward market than it does in the spot market, it is said to be trading at a forward discount. This means that the forward exchange rate is lower than the spot exchange rate, indicating that the future value of the currency is expected to be less than its current value. This can happen due to various factors such as interest rate differentials, inflation expectations, and political uncertainty.

When One Currency Buys Less of Another Currency in the Forward