The main factors affecting the dollar rate
From an economic point of view, money, like any othergoods, have their own value, that is, the rate. The rate of any currency is determined by the ratio of two key links: supply and demand, which, in turn, are subject to the influence of a wide variety of factors. These factors can be both economic and political. For example, the inflation rate, the balance of payments structure, the level of confidence in the currency, currency speculation, the currency policy pursued by countries, and the breadth of currency use in international settlements can be the causes of exchange rate fluctuations.
The variety of factors affecting the exchange rate,sometimes leads to a discrepancy between the exchange rate and its real value. In the financial crisis it is very important to be aware of all possible changes in the sphere of finance. For this purpose, you can use the services of various sites that have relevant information. Today one of the leaders is the financial portal , which provides up-to-date information on the financial market in real time.
If we look directly at the US dollar, thenhis course depends, first of all, on the gold reserves in America. The more these reserves, the more stable the dollar is. Also, the course is influenced by how debtors pay off loans taken in US banks. For example, the crisis of 2008 was caused by such debts.
In general, the behavior of the dollarit is unpredictable that no one will be able to predict it for 100%. The causes of sharp fluctuations in the exchange rate in a particular country can be combined into two enlarged groups: internal and external factors.
External factors include price changes inworld for oil. So, rising oil prices leads to a depreciation of the dollar, and vice versa. Another key factor is the dollar's exchange rate relative to other currencies. For example, if the dollar falls against the euro, then it falls and against the Russian ruble.
Internal factors include thoseThe circumstances that influence the dollar exchange rate within the country. One of them is the currency demand. A sharp increase in it causes a corresponding increase in the rate. The limitation of such processes is usually currency interventions. Another internal factor is the stability of the economic and political situation in the state. In crisis periods, the population's confidence in national currency is decreasing, and people are actively buying up dollars, which leads to an increase in its rate.
Despite the fact that the dollar today is consideredthe most widespread international currency, enjoying confidence in many countries, specialists, based on the data of the last 10 years, say that today it is in a very weak position. In this regard, the fluctuation of exchange rates is simply impossible to predict with any accuracy.
