What Factors Affect Currency Exchange Rates

Currency exchange rates are subject to a multitude of dynamic factors, ranging from economic fundamentals and central bank policies to geopolitical events and market sentiment. While it's challenging to predict exchange rate movements with absolute certainty, understanding these factors and their interrelationships can help individuals and businesses make informed decisions when dealing with foreign currencies. Whether you're a seasoned trader or a casual traveler, staying abreast of these influences can empower you to navigate the ever-changing landscape of global finance.