What affects foreign currency exchange rates?
The exchange rate between two currencies specifies how much one currency is worth in terms of the other. 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. The exchange rate is greatly influenced by interest rates of respective countries. Inflation, balance of trade accounts and political factors also impact exchange rate. It is important to look at the big picture when considering a foreign currency exchange strategy. • Why are your rates different than the rates I see published by other companies online? The rates seen online are the Interbank trading rates and are not for physical delivery. The physical delivery market is completely different. The trading market prices are only for trading when not taking physical delivery of an alternate curren
