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The subsequent theories explain the fluctuations in exchange prices in a floating exchange fee regime (In a hard and fast exchange charge regime, rates are decided by its govt):
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This could also be referred to as a market getting "oversold" or "overbought".[seventy eight] To buy the rumor or market The very fact can even be an illustration of the cognitive bias generally known as anchoring, when buyers concentration a lot of within the relevance of outdoor occasions to currency rates.
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