How do currency fluctuations impact global markets?

Currency fluctuations can have a significant impact on global markets. When a currency strengthens or weakens, it can affect the trade and investment flows between countries, which in turn can impact the stock and bond markets. For example, a stronger currency can make exports more expensive and less competitive, while a weaker currency can make exports cheaper and more attractive to foreign buyers. In addition, currency fluctuations can affect the profits of multinational companies that do business in multiple countries and have exposure to multiple currencies. Overall, currency fluctuations are an important factor to consider when investing in global markets.