Final answer:
The chosen emerging market currency is the Indian rupee. In the last two years, internal political events like the Indian general elections and economic policies, along with external factors like trade tensions and global market conditions, have influenced the exchange rate between the Indian rupee and the US dollar.
Step-by-step explanation:
The chosen emerging market currency is the Indian rupee. In the last two years, several political events have influenced the exchange rate between the Indian rupee and the US dollar. One internal event that affected the exchange rate was the Indian general elections held in May 2019, which led to a change in government. This event affected investor sentiment and confidence in the Indian economy, resulting in fluctuations in the exchange rate. Another internal event was the implementation of certain economic policies by the Indian government, such as demonetization and the Goods and Services Tax (GST), which had indirect effects on the exchange rate.
On the external front, the trade tensions between the United States and China had a spillover effect on emerging market currencies, including the Indian rupee. As the trade dispute escalated, investors sought safe-haven assets like the US dollar, leading to a depreciation of emerging market currencies. Additionally, factors such as changes in global oil prices and geopolitical developments also influenced the exchange rate between the Indian rupee and the US dollar.
Overall, the exchange rate between the Indian rupee and the US dollar experienced fluctuations due to a combination of internal political events, economic policies, and external factors such as trade tensions and global market conditions.