What influences fluctuation in currency rates?
The value of a currency may change based on many factors that directly affect it, such as interest rates, a world leader’s health, political circumstances and debt loads, or because the value of other currencies change. A currency’s value is always a reflection of its worth relative to the worth of other currencies. For example, the value of the currency of nation A rises because its government has announced the tightening of its monetary policy. As a result, the value of the currencies from nations B and C where no such change has been announced can be said to fall relative to A.
