A market based exchange rate will change whenever the values of either of the two component currencies change. A currency will tend to become more valuable whenever demand for it is greater than the available supply. It will become less valuable whenever demand is less than available supply (this does not mean people no longer want money, it just means they prefer holding their wealth in some other form, possibly another currency).
Increased demand for a currency is due to either an increased transaction demand for money, or an increased speculative demand for money. The transaction demand for money is highly correlated to the country's level of business activity, gross domestic product (GDP), and employment levels. The more people there are out of work, the less the public as a whole will spend on goods and services. Central banks typically have little difficulty adjusting the available money supply to accommodate changes in the demand for money due to business transactions.
The speculative demand for money is much harder for a central bank to accommodate but they try to do this by adjusting interest rates. An investor may choose to buy a currency if the return (that is the interest rate) is high enough. The higher a country's interest rates, the greater the demand for that currency. It has been argued that currency speculation can undermine real economic growth, in particular since large currency speculators may deliberately create downward pressure on a currency in order to force that central bank to sell their currency to keep it stable (once this happens, the speculator can buy the currency back from the bank at a lower price, close out their position, and thereby take a profit).
In choosing what type of asset to hold, people are also concerned that the asset will retain its value in the future. Most people will not be interested in a currency if they think it will devalue. A currency will tend to lose value, relative to other currencies, if the country's level of inflation is relatively higher, if the country's level of output is expected to decline, or if a country is troubled by political uncertainty. For example, when Russian President Vladimir Putin dismissed his Government on February 24, 2004, the price of the ruble dropped. When China announced plans for its first manned space mission, synthetic futures on Chinese yuan jumped (since China's currency is officially pegged, synthetic markets have emerged that can behave as if the yuan were floating).
Basis Of currency rate decision:
If a currency is free-floating, its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand. Exchange rates for such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world. A movable or adjustable peg system is a system of fixed exchange rates, but with a provision for the devaluation of a currency. For example, between 1994 and 2005, the Chinese yuan renminbi (CNY, ¥) was pegged to the United States dollar at ¥8.2768 to $1.
Exchange rate is determined by current value of a given currency. It works in a way similar to any product, really: the greater the demand, the greater the value. This isn't to say that people don't want money, they may want it in a different currency or perhaps in goods instead.
It is decided by the government and the status of the economy
It is determined by the exchange rate in that country.
Pegged currency ^For me on apex 2022 :)
floating
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.
Euro same as every were else in Europe. exchange rate to what other currency?
Pegged currency ^For me on apex 2022 :)
The currency brokerage rate is determined using the EUR / USD exchange rate. Read more at daytrading.about.com/od/currencies/a/WhatAreCurrenci.htm
It's basically the demand for the currency, which is determined by the economy of a country.
An exchange rate isthe price for which one currency is converted into anotherthe rate is determined by the supply and demand conditions of relevant currencies in the markettransaction of currency exchanges occurs int he foreign exchange markets.
floating
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
Convert one type of currency into another at a given exchange rate. That rate is determined by the supply and demand of the desired currency plus processing fees and/or commissions charged by the retail institution. The market where everyone can exchange currency into another called Forex (foreign exchange) market.
Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.
the foreign exchange rate is determined by the supply and demand of the market. If the demand of a certain currency pair is greater than the supply the price will rise and vice versa.
Incomplete question as you need to specify which currency to get the exchange rate
Euro same as every were else in Europe. exchange rate to what other currency?
Google has a currency exchange rate calculator as well as xe, x-rates, and Go Currency. Alternatively there are currency exchange rate calculators located at malls where you can exchange one currency for another.