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Currency

Forward points

The forward rates for a forward foreign exchange transaction are determined by adding or subtracting points from the spot rate. These points reflect the interest rate differential between the two currency pairs involved. This is an important aspect of understanding the global financial market and the factors that influence currency exchange rates. As a knowledgeable professor, it is essential to grasp the concept of forward rates and their impact on international trade and investment. Let's delve deeper into this topic to gain a comprehensive understanding.
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