Just out of curiosity why do and how do the currencies go up and down! For example, we follow Pakistan’s currency everyday against the pound. Today it’s 122 rupees against one pound, tomorrow it could be 121 rupees or 123 rupees.
Do the National banks decide at the end of the day what the currency rate would be tomorrow? Is there some sort of economic body that decides what the currency rate should be each day? Or is it out of people’s control and it results out of the business done daily on the stock markets?
Please keep it brief and don’t go into microscopic details.
Yup, and due to plans of travelling to India, I became to know:
7 Indian rupees is equal to a kroner. (stronger economy?)
Pakistani is rupees is 10/1 kroner. On a bad day its, 9,5.
good question. extending antibol's 'annual budget' theory elsewhere, he would probably say currencies fluctuate because the wind level varies in different countries at different points in time; so when hang out a rupee and dollar to dry, how much they flutter will squarely depend upon wind gusts.
well I wanted to know this one as well but after reading the above link read a litle bit but felt boring to me. I is may be I have not read Economics.
Till ow I have been thinking that their are international securities against the printed material. And whenever A big shark in this industry give statements or country situation gets bad, the currency goes down. Sometimes they withdraw their amounts to some extent and their international value goes down.
Internation securies are usually in Dollars that is why when US goes down other go up. Best way to keep dollar low is that Muslim countries give statment that they will change dollar into Euro, then Americas economy will collapse.