Why Do Live Exchange Rates Fluctuate So Much?
There are a variety of reasons why a live exchange rate is always changing. For example, the various levels of inflation that occur throughout the world, and the varying interest rates from one country to another will affect a live exchange rate.Other factors that can contribute to changing live exchange rates include export and import levels in a particular area, as well as the geopolitical stability of a region. Also, while the market is open, the non-stop trading of currencies and futures, particularly by banks, contributes to the instability of live exchange rates.