Saturday, January 9, 2010

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.

No comments:

Post a Comment