Article
Version 1
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Factors that Determine and Influences Foreign Exchange Rates
Version 1
: Received: 5 June 2021 / Approved: 8 June 2021 / Online: 8 June 2021 (15:59:19 CEST)
How to cite: Akter, R. Factors that Determine and Influences Foreign Exchange Rates. Preprints 2021, 2021060240. https://doi.org/10.20944/preprints202106.0240.v1 Akter, R. Factors that Determine and Influences Foreign Exchange Rates. Preprints 2021, 2021060240. https://doi.org/10.20944/preprints202106.0240.v1
Abstract
The Foreign Exchange rate is very much crucial for determining the economic health level of the country. The foreign exchange rate provides financial stability, enhances purchasing power and allows global trades. This rate usually fluctuates due to the market forces which control the supply and demand of the currency. Nominal and relative inflation and income level have a substantial effect on determining the exchange rates. Government measures, international situations, natural disasters or any unexpected situation like Covid-19, Rohingya crisis etc. can affect the exchange rates. Besides this, the interaction between the factors can create different reasoning to affect the market. This study tries to identify some factors with relevant examples.
Keywords
Foreign exchange rate, economy, inflation
Subject
Business, Economics and Management, Economics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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