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Username: ForexGuy

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Asked to: Heng Kim

Date Created: 03 Dec 2014
Category 46
Tag forex-article
Question How does the unemployment rate impact on the currency rate?
Advice from Guru
Hello Forex Guy,

The unemployment rate is measured by the number of citizens who are capable and want to work but can’t find a job.

If the unemployment rate is low, the national economy can be considered attractive and successful. In this case, investors can look for the ways of investing in this country. Thus, they provoke the growth of the local currency. A state with medium or high unemployment rate can be considered less successful with a moderate economy. Investors try to leave such countries, this in its turn has a negative impact on the national currency exchange rate which can be declining.
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