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Wednesday, July 1, 2009
Every day, individuals and institutions need to swap one country's currency rate for another. How much you can buy is determined by the exchange rate between the two currencies.
The goods and services in any country are priced, bought and sold using that country's currency. If you are from another country you'll need to exchange your currency for that country's currency to make a transaction. The currency exchange rate tells you how much of one currency you can buy with another. For example, if you travel to Europe you'll need to buy euros with your U.S. dollars. How many euros you can buy depends on the exchange rate history.
Futhermore, currency historical trends are not constant. On a day-by-day or in minutes basis, they fluctuate in response to foreign currency trading, economic forces and news events. The most important factors influencing currency exchange rates are international trade, monetary policy, the state of a country's economy and political stability. If demand for a country's goods is strong, people start buying more of that country's currency in order to purchase those goods. When demand for the currency goes up, its price goes up as well. Interest rates and other aspects of a country's monetary policy affect currency exchange rates by changing the amount and cost of money available. Political instability or economic problems tend to drive a currency's exchange rate down by reducing demand for a country's exports.
The goods and services in any country are priced, bought and sold using that country's currency. If you are from another country you'll need to exchange your currency for that country's currency to make a transaction. The currency exchange rate tells you how much of one currency you can buy with another. For example, if you travel to Europe you'll need to buy euros with your U.S. dollars. How many euros you can buy depends on the exchange rate history.
Futhermore, currency historical trends are not constant. On a day-by-day or in minutes basis, they fluctuate in response to foreign currency trading, economic forces and news events. The most important factors influencing currency exchange rates are international trade, monetary policy, the state of a country's economy and political stability. If demand for a country's goods is strong, people start buying more of that country's currency in order to purchase those goods. When demand for the currency goes up, its price goes up as well. Interest rates and other aspects of a country's monetary policy affect currency exchange rates by changing the amount and cost of money available. Political instability or economic problems tend to drive a currency's exchange rate down by reducing demand for a country's exports.
So whether you are in various countries, you can't escape the exchange rate curency if it rises or not in exchange of your dollars in a minute because it also boils down to the economy of one's country.
For more information regarding currency matters, you may call this number at: 08700-42-43 44.
Labels: General Business
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