Market Insights
Trading Tools
The premium fluctuates due to factors such as economic fundamentals, political risks, and market sentiment. Its level affects investor decision-making, cross-border trade costs, and capital flows, thereby affecting international investment and capital markets.
A basket of currencies is a monetary unit that uses a combination of multiple foreign currencies as a reference for exchange rates, and the proportion of a certain foreign currency in the combination is based on its importance in domestic international trade.