A financial year (FY) is a 12-month period used for tax purposes by most countries. It marks the time period in which a company or individual must pay their taxes. During the financial year, businesses usually carry out activities such as tracking income and expenditure, filing taxes, and forecasting revenue and expenditure. It is also a period of stability for the foreign exchange (Forex) market, in which investors usually begin to plan their investments and strategies for the coming year. By understanding the various factors that can influence the Forex, investors can form an informed opinion of how the currency might perform during the particular FY.