Exchange rates fluctuate due to one of the main factors: global demand and supply. The more demanded a particular currency, the more its value will increase. Factors affecting the demand and supply of currency include governments and enterprises trading at the international level, political and economic stability of countries, travel and tourism, currency trading in the stock market and even natural disasters.  The rules and actions of the countries that regulate their currency, known as their fiscal policy, also influence the rules. Interest rates play a significant role in fluctuations. Favorable movements in interest rates will stimulate demand for a certain currency, increasing its value.  trade organizations, as well as the amount of currency that they buy and sell at any given time. Currencies are traded (bought and sold) daily around the world. One currency can be bought by another currency through banking institutions or on the open market. Currency exchange rates increase and decrease depending on the attractiveness of a particular currency, which depends on many factors, such as political stability, economic strength, public debt and fiscal policy. 85504
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