What Affects Currency Rates

Have you ever wonder why the value of currencies give on changing time to time .currencys are traded at forex market. there are many factors that contibute to this changes.These fundermantals include:, 1.POLITICAL FACTORS; Political stability of any country determine the rates at which its currency will be be traded.For example the currency of zimbabwe went down because of of political instability. 2.DATA REPORTS; reports that are released by various bodies within a country or outside determine the way a currency will be traded.these bodies include such as World Bank, IMF, Central Bank any others.these report include projected economic growth. 3.INTEREST RATES LEVELS;the interest rates determine the value in which the currency will be traded at.4;MONETARY POLICIES; monetary policies that central bank of any country will greately influence the direction on which the currency will be exchanged.5; INTERNATIONAL TRADE FLOW; countries trade policies with other countries influence wich direction in which will be going at.