In the United States, foreign exchange rates are determined by the ever-changing economic conditions of a given country relative to its trading partners. As such, Walmart’s future financial performance could be impacted in multiple ways depending on how these rates fluctuate over time. For instance, if domestic currencies become more valuable compared to others then Walmart may not be able to buy goods from abroad as cheaply which could affect their bottom line.
Additionally, changes in foreign exchange rate can also influence demand for imported items either positively or negatively depending on whether or not they are perceived as being affordable or desirable anymore when converted into local currency. Finally, fluctuations in these rates may also make it difficult for Walmart to accurately predict profits since it is hard to tell just how much value any given asset will have at a later date due to unpredictable market forces beyond their control. Ultimately, understanding foreign exchange rates can provide invaluable insight into what shape Walmart’s future finances might take and help them prepare accordingly.