We often see information on changes in the exchange rate of a country's currency against other currencies both in banks, forex exchanges and money changers. Changes in currency exchange rates can occur quickly. In theory, changes in the price of goods will occur due to supply and demand factors so that the exchange rate will strengthen or weaken. However, changes in supply and demand occur due to changes in several factors, both domestic and foreign.
Why Do Currency Exchange Rates Change?
- Thread starter Suba
- Start date
The stability of the economy also determines the strength of the currency and most importantly, the value of currencies are measured against the dollar.
The fluctuations in currency exchange is due to demand one currency is placing on the other currency. It still follows the principle of demand and scarcity. If one country demand more of other currency, the first currency will be rising in value.
Government policies could also contribute greatly to the change in the currency exchange rate .
Currency exchange rates exist in a market and the forces of demand and supply cause it to keep changing.
