Factors affecting

Factors affecting the value of currency encompass a range of economic variables crucial to global markets. These include interest rates, inflation rates, political stability, and economic performance indicators. External factors like trade balances and geopolitical events also play pivotal roles. Currency values are sensitive to market sentiment and investor confidence, shaping exchange rates and international trade competitiveness. Understanding these factors is vital for businesses and investors navigating currency markets to mitigate risks and capitalize on opportunities in a dynamic global economy.