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October 19, 2016, 10:41:08 AM |
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There are arrays of factors that determine how much a currency is worth. These include actual monetary flows (imports, exports) caused by changes
in GDP, inflation, unemployment, interest rates, budget and trade deficits or surpluses. All these macroeconomic conditions affect the value of a currency
because they regulate the demand and supply of the particular currency. If, for example, there is high inflation the demand for the particular currency
will drop as its purchasing power is eroded.this make the market unstable and because of the instability movement of the market is highly unpredictable.
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