Global trade plays an important role in determining the value of currencies, because it affects the supply and demand for different currencies. Here are some ways international trade can affect the value of currencies:

Exports and Imports: When a country increases its exports, demand for its currency increases because foreign buyers need to buy that currency to pay for goods1. The opposite is true when imports increase, as this leads to an increase in the supply of the local currency in global markets, which may lead to a decrease in its value1.

Trade balance: If a country has a trade surplus, meaning the value of its exports exceeds the value of its imports, this can lead to a strengthening of its currency. The opposite is true in the case of a trade deficit1.

Fluctuations in exchange rates: Changes in the value of currencies can affect the price competitiveness of goods and services in global markets, which in turn affects international trade1.

Speculation: Speculators in the currency market can influence the value of a currency through their expectations about global economic trends and international trade1.

Global Economic Trends: Major economic events and global trends, such as financial crises or major trade agreements, can affect the value of currencies significantly2.

It is important to note that these factors interact with each other and with..........................