Why Do Currency Exchange Rates Change?

[Suba]

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.

 

[nomad]

The currency rate is normally the rate compared with the USD (as USD is considered a global currency). The currency rate depends on a number of factors, most importantly the Gross Domestic Product of the country.

 

[uptrendfinancialsignal]

The stability of the economy also determines the strength of the currency and most importantly, the value of currencies are measured against the dollar.

 

[Magnus2022]

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.

 

[cherry123]

yeah I agree with you the fluctuations in currency exchange happens I believe because of the demand in one currency that is place higher than the other currency snd vice versa

 

[uptrendfinancialsignal]

Government policies could also contribute greatly to the change in the currency exchange rate .

 

[Niyi Briggs]

Currency exchange rates exist in a market and the forces of demand and supply cause it to keep changing.

 

[Rubz]

Currency exchange rates can change due to a lot of factors. It could be due to supply and demand, government policies, interest rates, global events, trade balance, unemployment rates, central bank actions.