What makes the exchange rate move?


There are a variety of fundamental and technical factors that can cause exchange rate movements. The most significant impacts include interest rates, inflation, and political stability. Sometimes the government buys or sells a currency in an attempt to influence its value in the hope of having a broader impact on the country’s economy. This is known as central bank intervention and can have a significant impact on the value of a currency. Given the size and diversity of participants, there is no single factor that can affect the forex market for a longer period of time.

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