Factors That Influence Foreign Exchange Rates

Foreign exchange is a measure of how a country's currency is doing in the global market. Just as temperatures fluctuate in different environments, the exchange rates of countries also fluctuate every hour in every day. When it is morning in one side of the world and nighttime in the other sphere, currencies are bought and sold in every part of the globe. Trading involves trillions of money exchanged in the global market. Forex can be affected by several factors.

Exchange rate is the ratio

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