Why Do Exchange Rates Change? 7 Key Factors Explained
Exchange rates never stand still. One day your euro buys 1.10 dollars, the next only 1.07. Why? Here are 7 key factors that move currency values every single day. 1. Interest Rates Higher interest rates attract foreign investors looking for better returns on bonds or savings. Increased demand for that currency pushes its value up. Example: If the US Federal Reserve raises rates while the ECB holds, USD often strengthens against EUR. ...