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In a country, inflation can have a significant effect on the currency value and foreign exchange rates of the country with foreign currencies. However, among many, inflation is only one factor affecting the exchange rate of a country.
The effect on currency value and foreign exchange rates is more likely to be significantly negative, rather than significantly positive. A very low inflation rate does not guarantee a country's favorable exchange rate, but a very high inflation rate is likely to adversely affect the exchange rate of the country with other countries.
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