A country's forex exchange rate provides a window to its economic stability, which is why it is constantly watched and analyzed. If you are thinking of sending or receiving money from overseas, you need to keep a keen eye on the currency exchange rates.

1. Forex Rates Today
http://www.forexrates.today/blog/category/foreign-exchange/

2. Why Forex Exchange Rates
Affected?
lInflation
lPolitical Stability & Performance
lCountry’s Current Account Deficits
lInterest Rate
lGovernment Debt
lRecession

3. Inflation
As a general rule, a country with
a consistently lower inflation rate
exhibits a rising currency value,
as its purchasing power
increases relative to other
currencies. The prices of goods
and services increase at a
slower rate where the inflation is
low. Those countries with higher
inflation typically see
depreciation in their currency in
relation to the currencies of their
trading partners.
This is also usually accompanied
by higher interest rates.

4. Political Stability & Performance
A country's political state and economic performance can affect its
currency strength. A country with less risk for political turmoil is
more attractive to foreign investors, as a result, drawing investment
away from other countries with more political and economic
stability. Increase in foreign capital, in turn, leads to an appreciation
in the value of its domestic currency.

5. Country’s Current Account Deficits
A country’s current account reflects balance of trade, earnings on
foreign investment and its trading partners, reflecting all payments
between countries for goods, services, interest and dividends. The
excess demand for foreign currency lowers the country's forex
exchange rate until domestic goods and services are cheap enough
for foreigners, and foreign assets are too expensive to generate
sales for domestic interests.

6. Interest Rate
Changes in interest rate affect currency value and dollar exchange
rate. Forex rates, interest rates, and inflation are all correlated. By
manipulating interest rates, central banks exert influence over both
inflation and exchange rates, and changing interest rates impact
inflation and currency values.

7. Government Debt
Countries will engage in large-scale deficit financing to pay for
public sector projects and governmental funding. While such activity
stimulates the domestic economy, nations with large public deficits
and debts are less attractive to foreign investors. The reason? A
large debt encourages inflation, and if inflation is high, the debt will
be serviced and ultimately paid off with cheaper real dollars in the
future.

8. Recession
When a country experiences a recession, its interest rates are
likely to fall, decreasing its chances to acquire foreign capital. As a
result, its currency weakens in comparison to that of other
countries, therefore lowering the exchange rate.

9. Contact Us
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