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

7008 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

What are negative externalities of consumption? Explain with a diagram.


Explain how a profit can be earned in the short run but not the long run in a perfectly competitive market.


If monopolies are so inefficient, why do they still exist?


How do you calculate the net social welfare loss due to a negative externality in production?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences