Exchange Rate Fluctuations Factor

XAT 2014 · General Knowledge · Medium · General Knowledge

The factor that least influences exchange rate fluctuations:

  1. A.

    Industrial Production

  2. B.

    Investor sentiments

  3. C.

    Interest Rates

  4. D.

    Consumer Price Index

  5. E.

    Goods and Service Tax

Answer

B

Explanation

Investor sentiment is subjective and generally has less direct macro economic influence on exchange rate fluctuations compared to economic indicators like CPI, interest rates, and trade production.

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