Thursday, May 13

Tag: dollar rate

Misc

Ever Wondered Why Dollar Goes Up?

The Fluctuations in Foreign Currency: While there are many reasons for relative currency values, fluctuations. Some of the common ones are identified. It depends upon various factors that which currency rate is beneficial for the country. Interestingly, if the currency's relative value is low, it does mean that that country is poor or undeveloped. Take the example of South Korea! 1: Printing Money: It is one of the most known causes of currency devaluation. The reasoning behind this is the basic principle of Economics. That is supply and demand. For instance, when there are two products in a hypothetical market and the total available cash is Rs.1000. Hence, each product will cause Rs 500/- each. Now if govt. prints more money and total cash increases to Rs1500, now each commodity will ...