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Expansion is additionally a noteworthy indicator, as it imparts a sign of increasing price levels and falling buying power. In any case, expansion is a twofold edged sword. Many view it as putting descending pressure on a currency due to retreating buying power. Swelling can likewise prompt currency appreciation, as it might constrain national brokers to increase rates to control increasing expansion levels. Expansion is a fervently challenged issue among economists, and its consequences for currencies are rarely direct.

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