What are the governing factors in exchange rate fluctuations?

Answer 1

the stock exchange, simple as that, price goes up or down based on it's daily trade value, and the value of currency is dictated by social and political reasons

and the bottom line is supply and demand, it's a product, the more people want your product the more valuable it is

currently, the US has become a sensative economy and few foreign investors are willing to put thier money in US banks, The us governement has overspent and depeated the value of the US dollar, and few people hold onto something that is steadily decreasing in value

The sad thing is, when a governement goes to war, it becomes the spender of it's own assets, and becomes a consumer and fails to produce anything others want.

I would not be suprised if, the US governement "suggests" a share of oil sales from the Iraq people(if and when that region becomes stable), due to it's "help" in the war.

Answer 2

Its all demand/supply. If a currency has more buyers it becomes more valuable and vice versa. The people buying have views as to what they think the value should be - they may all be different, it just their opinion. So, to answer your question, if your view matches the consunsus view but you get in first - you're the winner!

Answer 3

CONFIDENCE

i.e. the BELIEF (by buyers & sellers) that the "worth" of a Countries assets (as expressed by its Currency) will go UP or DOWN compared to OTHER Countries ...

Answer 4

i wish i knew........

there are TOO many factors in the world, NOT even GOVERNMENTS call singularly influence the rate.