0
What are some of the causes of fluctuation in the exchange rate?
Wiki User
∙ 11y ago
The only things that causes of fluctuation in the exchange rate are the Supply and demand of the traders which are influenced by current financial events and speculation.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Explain why when exchange rates change some groups benefit and others lose?
When the exchange rates change some groups benefit like people who are exporting when the exchange rate drops. It is much worse if you're importing and the rate goes down.
What are some of the main causes for fluctuations in foreign currency exchange rates?
Some of the main causes for fluctuations in foreign currency exchange rates are differentials in inflation and differentials in interest rates. Others include currency-account deficits and public debt.
What is a foreign exchange spot rate?
The foreign exchange market is the made up of 2 components. First the Spot rate. This is the exchange rate at the present time. The spot rate on FX changes every second and is constantly updating. Second is the Future rate. This is the rate for the currency at a predetermined time in the future. This could be hours, days, month, years, etc. Some traders use the futures rates as an indication of future trends in the currency's price.
How do changes in interest rates inflation productivity and income affect exchange rates?
Some countries simply allow the exchange rate to be determined by demand and supply. Some countries attempt to keep the exchange rate between their currency and another currency constant. When countries agree to keep the value of their currencies constant, there is a fixed exchange and is called exchange rate system. Exchange rate or value of a currency is defined by its supply and demand factors. If a country has high interest rate, that will attract more investors to buy that currency to invest (increase in demand for the currency). If inflation is high, the value of the currency decreases over time and therefore not attractive to hold (decrease in demand). If the country has high productivity and does a lot of exports, foreigners will need to buy currency in order buy the goods (increase in demand).
How much euro is a US dollar?
One US $ is 0.74 Euros as of 25 Sep 2013. Exchange rate will change some every day.
What are some new technologies in the publishing industry?
impact of fluctuation in rupee-dollar exchange rate on Indian industry
On which websites can one find the USD exchange rate?
There are multiple currency exchange rate websites that one could look to. Some examples are: XE, Exchange Rates and Yahoo Finance. Most major banks will also have an exchange rate on their website.
What are some things that have a sinnificant effect on the foreign exchange rate?
There are a number of things that have a significant effect on the foreign exchange rate. Some of them include state of the economy and the value of the currency among others.
Explain why when exchange rates change some groups benefit and others lose?
When the exchange rates change some groups benefit like people who are exporting when the exchange rate drops. It is much worse if you're importing and the rate goes down.
What is meant by exchange rates?
In finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. For example an exchange rate of 123 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 123 is worth the same as USD 1. The foreign exchange market is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. Edit: Definition the value of one currency in terms of another.
What are some of the main causes for fluctuations in foreign currency exchange rates?
Some of the main causes for fluctuations in foreign currency exchange rates are differentials in inflation and differentials in interest rates. Others include currency-account deficits and public debt.
Why do nations need a system of currency exchange rate?
Nations need a system of currency exchange rate in order to be able to tell the value of their currencies. The exchange rate is set again the price of gold in order to have some uniformity across all nations.
What is meant by the exchange rate of the US dollar?
It refers to how many dollars you would get if you exchanged some foreign currency for dollars. For example, the exchange rate for GB pounds is currently 1 pound for 1.53 US dollars
What is a foreign exchange spot rate?
The foreign exchange market is the made up of 2 components. First the Spot rate. This is the exchange rate at the present time. The spot rate on FX changes every second and is constantly updating. Second is the Future rate. This is the rate for the currency at a predetermined time in the future. This could be hours, days, month, years, etc. Some traders use the futures rates as an indication of future trends in the currency's price.
What are the causes effects and remedies of price fluctuation in agricultural products?
the causes are many, some reads; seasonal change in supply which is adversely affected by natural or climatic factors, lack of finance, use of crude implements, seasonal shortage of demand and etc.
How much is 2780 EUR in us dollars?
About 3600 $ at an exchange rate of some 1.3$ / 1 € ... check the exact rate you will get from your bank , it changes hourly ;-)
How much does 4 grams of gold equal in money?
The price fluctuation of gold and that the gold can be 14k 18k 24k or some other percentage of gold makes an answer difficult. At 14k the gold is worth 60 % of it weigh at the current gold exchange rate 18K 75% and 24k 100%. 4 grams is 1/7 of an ounce only when the gold is 24K
