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How Financial Factors affects Currency Exchange

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How Financial Factors affects Currency Exchange

Post by Jacq Stone on Fri Oct 28, 2011 8:15 pm

Currency exchange rates are greatly influence by financial factors, particularly the interest rates. Financial factors are vital to fundamental analysis. Changes in a government's monetary or fiscal policies are bound to generate changes in the economy, and will be reflected in the exchange rates. Financial factors should be only triggered by economic factors. However, financial factors may have priority over economic factors when governments focus on different aspect of the economy. Financial factors that affecting currency exchange rates are money supply and interest rates.

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Jacq Stone

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