The conversation between human and AI assistant.
What are the factors that affect a country's currency?
What about political stability and how does it affect currency?
Political stability is also important for a country's currency. When a country's government is stable, it can signal to investors that the country's economy is also stable and that their investments are less risky. This can increase demand for the country's currency and cause its value to rise. On the other hand, when a country's government is unstable, it can decrease investor confidence and cause its currency value to fall.