Hard question to answer.?

Question

What makes a currency of a country higher, for example, I know that $1 USD is equal to only .53 cents of UK pounds.
So what makes the UK pounds higher than dollars?
Why are UK pounds worth more than dollars?
Please do not answer if you really dont know.

Answer 1

there are many factors involved in the currency rate. basically it is how much two country import and export to each other. like if US is exporting more to UK then UK people would need more dollars to pay then dollars rate would go up. and if US is importing more from UK then they need more pounds then pounds rate would go up. this is one factor. second factor is return on investment. if one gets more interest on dollars in USA then many UK people would convert their pounds in dollars to invest in US then dollars rate would go up. this we are considering for only two country transactions but for the US dollars as it happens to be international monetary bill. many countries economy, purchase, GDP, rate of interest, political stability, natural calamity and such things affect on the rate of currency.

Answer 2

the dollar bill is not worth anything... a dollar stands for a dollar worth of gold...
in the UK .53 pounds are thee same as a dollar.. and .53 pounds is the worth the same amount of gold as a dollar... so really they are the same... it has to do with the amount of gold in each country

Answer 3

The value that people perceive the other countries currency to be worth. There were almost 2000 lira (Italian) to $1.

Answer 4

it's actually a bad thing when your currency is as high as the pound, because then it makes everything more expensive...

the currencies are controlled by federal interest rates, overall economic performance, and economic growth... way too much to explain over yahoo questions to do it justice...