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| Currency Conversion Rates |
Executive Summary About Currency Conversion Rates By Mansi Aggarwal
The Currency Exchange market is recently introduced to the public. Basically foreign currency conversion market deals with trading between different foreign currencies. In this trading, you buy a currency using a foreign currency of another type. The participants of currency conversion indulge in trading and buy a foreign currency expecting the currency to have more value in the future.
The results of currency conversion trading happening in one country will affect the other countries in the market. The countries will open and close the currency exchange market with different time zones. The market highly depends on the currency conversion rates. The buying and selling of currencies greatly depend on the future value of the currency. The currency conversion rates change everyday. There are several economic and political factors that affect the currency conversion rates. Depending on these conditions in the participant countries, the corresponding value of foreign currency will increase or decrease.
Budget of the government
The currency value of a country varies with the government's budget.
Trade levels of a country
The currency conversion rate increases when the country has trade surplus, that is, it exports more than it imports. Sometimes the currency value will increase expecting the banks to increase the interest rates to balance the economy of the country.
Robust economic growth
The economic growth of the country is determined by various numbers like GDP, FDP etc. When these numbers are high the country is economically strong which increases the demand for its currency.
Political factors
The political stability of the country has impacts on the relationship with other countries. If the political condition becomes instable then the credibility of the country is declined thereby affecting the currency value.
Traders' psychology
As a result of this the currency value also increases. When the value is actually found to increase, those currencies are sold.
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