Many of the price fluctuation in short-and medium. But how fluctuation can occur and why fluctuation in the forex market is always there? Here we will discuss about the fluctuation of currency values that always keeps going. The cause of the fluctuation did not miss from the discussion in the article. Let’s discuss each one.
If we follow the development of the world currency markets, we may want to know how it can walk. Why is the value of a country’s currency can be changed, when it changed? What factors affect it?
Currency will tend to become more valuable whenever demand exceeds available supply. It will become less valuable whenever demand is less than available stock.
Increased demand for the currency is the best because it increases demand for transactions, or possibly an increase in speculative demand for money that makes the value of the currency has a price or appreciated.
The transaction demand for money to be highly correlated with the level of business activity related to the gross domestic product (GDP) or gross domestic income (GDI)), and the level of demand for labor.
The higher the level of unemployment in a country will be less overall people can spend money on shopping expenditures for purchases of goods and services.
The value of a country’s currency may change (fluctuation) as influenced by several factors, such as:
1. Policy of the state government (the country’s political condition)
2. The economic conditions of the country (the country’s economic growth)
3. Unexpected factors such as: News world such as natural disasters, riots could soon affect the political, economic and others.
This means that more and more people are unemployed, the less the public will spend for goods and services. Central banks typically have little difficulty adapting the money is there for changes in the demand for money at the expense of business.
So this time we study the fluctuation of currency values. May be useful.