In the short run,movements in exchange rates are caused largely by economic fluctuations.

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In the short run, exchange rates are largely influenced by economic factors such as inflation rates, interest rates, and geopolitical events. These economic fluctuations can cause fluctuations in the demand and supply of currencies, thus affecting their exchange rates. In the long run, however, exchange rates are influenced by various non-economic factors as well, such as political stability, government policies, and market sentiment.

In the Short Run,movements in Exchange Rates Are Caused Largely