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Currency rates are a relative price of one currency to another. Forexample the Euro is quoted (09Oct09) as 1.47. This implies that 1 Euro buys 1.47 US Dollars. Should that rate increase the Euro is RELATIVELY more valuable and the US Dollar RELATIVELYless valuable.
Factors driving the relativity include:
1) Economic factors such as business cycle, trade flows
2) Interest Rates - high interest rates may make the currency attractive (i.e. Australian Dollar)
3) Outright Speculation - Speculators taking a view that the currency is going to change in value
4) Central Bank Intervention
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How much is 86 us dollars in sterling?
This answer will change and the value of the currencies change, but as of today (11/17/09), the answer is about 51.15.
How are the Value of currencies around the world fixed?
It's unofficial, but most of the world's currencies are measured relative to the dollar.
How do you get all the currencies around the world to be of same value?
Not possible.
Can you give details of different currencies?
Different currencies are usually compared against the US dollar or the Euro in Europe. Each of these currencies has a different standard, and when comparing another currency to it, such as the British Pound, the exact value can be determined. All currencies have different values.
When the value of a nation's currency declines relative to other currencies what is that?
Inflation
Where is the best place to change currency?
A Bank. Any bank would help you change currencies.
What will happen to the value of the dollar (against foreign currencies) if the U.S. price level doubles?
The value will decrease by 50%.
How do you increase the value of rupees comparison with dollar?
One cannot do this; they can only hedge the rupee with other currencies to subdue the value swings.
If consumers from Country X greatly increase their purchases of products from Country Y the value of these two countries currencies relative to one another will change in what way?
Assuming there are no other changes that the one stated, the value of the currency of country X will decline relative to the value of the currency of country Y.
What is the currency appreciation?
The rise in value of a currency relative to other currencies and sometimes gold. There are many economic explanations for the movement (or appreciation and depreciation) of currencies relative to one another and to gold.
What is currency appreciation?
The rise in value of a currency relative to other currencies and sometimes gold. There are many economic explanations for the movement (or appreciation and depreciation) of currencies relative to one another and to gold.
What is devaluing?
an official lowering of the exchange value of a country's currency relative to gold or other currencies.
