FACTORS AFFECTING EXCHANGE RATES

There may be various reasons for fluctuations in exchange rates but these are some of the major factors that usually affect the exchange rate or should I say the market value of a particular currency.
Inflation, Interest Rates, Crossborder trades, Political factors, and last but not the least Speculation. Yes thats right a mere speculation that a particular event may happen can cause the value of a currency to change. Government of a country may itself play a major role in changing the value of the currency. Its always better to be aware of the socio-political enviornment of the world if you want to make profits with forex.

POPULAR CURRENCIES TO TRADE

Currencies of some countries get traded more often than currencies of other countries. Some of the currencies that get traded more than others are US Dollars, Euro, Pound, Yen, Swiss franc, Australian Dollar, Canadian Dollar. But then you can always trade with other currencies which you might have better understanding of. Say if you are more aware of the situation that might effect the rate of Dollar vs Rupees that is where you should be more interested in.