interest-rate differentials
Coverage of interest-rate differentials in the Nexus archive.
- The AI boom is not just driving stocks — it’s also moving the foreign-exchange market
The AI boom is influencing both stocks and the foreign-exchange market. Traditionally, interest-rate differentials, inflation trends, and trade balances were thought to drive currency movement. However, companies expanding their artificial intelligence offerings are increasingly becoming a key driver in this market.
- Folly of chasing exchange rate
The article discusses Pakistan's flawed approach to managing its currency, arguing that the rupee's value is determined by market forces and structural economic factors rather than administrative decisions. It criticizes policymakers for treating exchange rates as a tool without addressing deeper issues like inflation, government spending, and unreliable energy infrastructure.