What is Capital flows?
EconomyMoney moving between countries to invest. Inflows tend to strengthen a currency; outflows weaken it.
Think of it like: Tides of money flowing in and out.
Real example: In the 2013 Taper Tantrum, money flowed out of emerging markets such as India, Brazil, Turkey and Indonesia, and their currencies fell.
Lesson: Money flowing in and out Practise it now: Headline Reflex