What are the Factors that Affect a Country's Currency Exchange Rate?

[Suba]

Exchange rate is the value of a country's currency measured against the currency of another country such as JPY-USD, EUR - USD etc.

Exchange rates are very much needed in various fields of economics and finance such as global trade, forex trading, export-import, sending money to other countries etc. Exchange rates can change either due to appreciation or depreciation. In addition, we also know that there are several types of exchange rates out there such as buying rates, selling rates and middle rates. So in your opinion, what are the factors that affect a country's currency exchange rate?

 

[Kross]

It is just simply the demand for the currency of the country based on export they have in the international market that determines the exchange rate.

 

[Starmix]

Sudden rise of inflation, war, famine, global warming are among the factors that could affect a country's currency rate. The new rate that we have in our country is the soar of the US dollar against the Ph peso. It's crucial for the economy and banking services m

 

[Augusta]

in my country I think it is mostly inflation rate. When the inflation rate is high them the exchange rate become very weak.

 

[Augusta]

Some countries even enjoy the inflation rate as the foreign currency rate is higher and those using the currency in the country enjoy high rate of exchange

 

[Starmix]

The exchange rate from the US dollar to Phillipines peso worries the Central Bank. The rate is so high this time from 55 pesos per dollar, it's now 60 pesos per US dollar. It weakens the Philippines peso.

 

[Stardom22]

For me l think that there are so many factors that contributes to the country's currency exchange rates. The amount of the foreign exchange or currency that a country gets from exports, tourism among other factors.

 

[King Belieal]

A country's exchange rate is affected by the difference between the exports of the country and it's imports. More exports makes a country's currency stronger.

 

[Augusta]

Several factors can influence a country's currency exchange rate, including interest rates, inflation, political stability, economic growth, and the balance of trade.

 

[magnus2022]

Countries that create more vslues tends to have strong currency against those that are dependent on others to survive. Another factor is corruption and war. Corruption is far the most factor that depreciate currency value in international markets.

 

[Augusta]

Another is Changes in the relative prices of a country's exports and imports can affect its currency's value.