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Economic growth is a sign of a healthy economy. This shows that the economic indicators are green. The stronger the growth, the more investors will be attracted to invest in the country (and buy the currency). As a result, the currency of the country concerned will appreciate on the foreign exchange market. A change in the exchange rate is naturally induced by this phenomenon. Investors will buy currencies linked to a country with strong economic growth and sell those from countries with low growth (or recession).
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