ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Exchange rates are constantly moving, based on supply and demand. Whether one currency is in higher demand than another, depends on the perceived value of owning it, either to pay for goods and services, or as an investment.

Detailed explanation-2: -Foreign exchange rates are constantly changing. We update our rates at least once every business day, based on current market conditions.

Detailed explanation-3: -The majority of the world’s currencies are bought and sold based on flexible exchange rates, meaning their prices fluctuate based on the supply and demand in the foreign exchange market. Increased demand for a particular currency or a shortage in its availability will result in a price increase.

Detailed explanation-4: -If a country experiences inflation, the prices of its exports increase, making them less attractive to foreigners. Inflation can also decrease domestic demand for domestic goods, leading a country’s importers to exchange their currency for foreign ones in order to buy cheaper goods from abroad.