Can an exchange rate crisis occur if the unemployment rate is too low?

Anything can happen while the unemployement rate is low. The exchange rate is base on the value of the dollar. Dollar has been going down for a while and gold has gone up. Soon it will be the other way around. The market peaks about every 10 years.

Can an exchange rate crisis occur if the unemployment rate is too low?construction loans

This is possible, perhaps if the central bank is trying to exploit the %26quot;Phillips Curve%26quot; by running inflation high to keep unemployment low. This is likely to cause the exchange rate to depreciate in both the short and the long run. Unemployment might fall in the short run, but would return to normal (or rise) in the long run if the central bank persists in causing inflation. Hyperinflation could result.