Why does the price of the currency circle rise and fall

1 thought on “Why does the price of the currency circle rise and fall”

  1. Because the rise and fall of the currency circle depends on the overall situation of the market, the price of large orders, and the progress of the project party.
    The impact on the exchange rate caused by a country's foreign trade status, we can see that the status of international income and expenditure directly affects the change in the exchange rate of a country. If a country's international income and expenditure surplus, the demand for currency in the country will increase, and the country's country will increase, which will lead to an increase in the country's currency exchange rate. On the contrary, if a country's international revenue and expenditure deficit, the demand for currency in the country will decrease, and the country's country will decrease, which will lead to the decline in the currency exchange rate of the country and the country's currency depreciation. Specifically, in the international income and expenditure projects, there is the greatest impact on the exchange rate changes. In addition to the above trading projects, there are also capital projects. The surplus or deficit of trade revenue and expenditure directly affects the rise or decline of currency exchange rates. For example, an important reason for the decline in the US dollar exchange rate is that the US trade deficit is getting more serious. On the contrary, due to the huge trade surplus of Japan, the international income and expenditure situation is good, and the exchange rate of the yen is rising. Similarly, the surplus or deficit of capital projects directly affects the rise and fall of currency exchange rates. When a country's capital projects have a large number of deficit and other projects of international revenue and expenditure are not enough to make up for, the country's international revenue and expenditure will have a deficit The currency pairs fall. Conversely, it will cause the rise in the currency exchange rate of the country.

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