A group of traders was found to be changing the price of the foreign currency by a considerable amount in the least regulated markets of the country. This activity created a disaster in the market by raising the value of the local currency in the global market. The other suspicious matter that was observed during the course was that the major global banks were being benefited in their investment schemes. The Attorney General of the United States, Eric H. Holder Jr. ordered for a strict investigation regarding the matter in order to find out the best possible strategy to resolve the problems that have arrived due to the trading of the currency. The team that was assigned for the investigation of the case focused on the records of the currency trading and the reaction of the market concerning the increase in the currency rate (Protess et al., 2013).
The currency rate is a vital determinant of the international business. The value of the currency in the international business can be enumerated by the facts that the international currency reduces the transaction costs and assists in overcoming the barriers of the international business. In the context of the aforesaid event, it has been found that the major banks were involved in the violation of the currency in the US market. This led to a rise in the currency value and affected the international business strategy of the country.
The article reveals that the US Dollar has gone through a decline as a consequence of the drop in the growth of the industrial sector and manufacturing process of the country. The demand for the US Dollar in the international market and the lack of gains in the stock prices led the national economy to a downfall and at times this kind of situation leads to financial crisis. It has been ascertained that the Japanese currency Yen was heading forward in the global market and transcending the US Dollar to a great fall in the value. As per the