What are causes of exchange rate fluctuations?

Causes of exchange rate fluctuations:

- short term - changes in the demand and supply of the currency in the FOREX markets. (mainly due to speculations).

- longer term - exports, imports, capital flows - that are based on differences in countries:

rates of inflation

interest rates

rates of economic growth

labour productivity

measures of international competitiveness

JR
Answered by Julia R. Economics tutor

7238 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Explain the term price elasticity of demand


What factors influence the shift of a demand curve?


How do automatic stabilizers work?


Discuss the impacts of a price ceiling on stakeholders


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning