What is the cause of the devaluation of any country rsquo s currency ........

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What is the cause of the devaluation of any country’s currency?

Increase in the domestic inflation rate

Domestic real interest rates are less than foreign interest rates

Much increase in the income

All of these

Explanation:

- Increase in the domestic inflation rate: High inflation reduces a currency's purchasing power and makes it less attractive, leading to devaluation.

- Domestic real interest rates are less than foreign interest rates: When local interest rates are lower, investors may seek higher returns elsewhere, reducing demand for the domestic currency and causing devaluation.

- Much increase in the income: Rapid income growth can lead to more imports than exports, affecting the trade balance and potentially leading to currency weakening.

- All of these: All options can contribute to a currency's devaluation.