how does currency fluctuate? why do peole say that china fixes the value of its currency and how does it help china's exports?
208203
Depends on a variety of economic factors. Every country has its own reasons for fluctuations.
100122
It's really a matter of the confidence of the people in our system.  Since our currency is fiat money, that means there's no gold or anything backing our money, it's only worth what people believe it to be worth.  As long as people have confidence in the system it will continue to work.  If people give up and lose faith in the system, it could theoretically collapse.  Personally I don't think it will.  That said, the advice you mentioned is good.  Those investments tend to be less affected by market forces.
15580
Prices generally go up but dont come down. Even if they fluctuate or fall, the long term trend is always up
665245
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268799
The Iraq War. It has bankrupted the country and the only reason the dollar has not dropped a lot faster is because China and Japan are supporting it so they can peddle their junk to the U S.
128952
Currencies are based on purchasing power, and interest rates in nations. If there are high interest rates that exsists in say the U.S. and low interest rates in Japan the exchange rates will move in the favor of the U.S.  If inflation is high in the U.S. compared to Kenya the U.S. dollar will fall to the shilling. To maintain equal purchasing or investing power between the two nations. This happens because in a free market world economy the prices of all similar goods and services will have very similar if not the same prices.
246697
A sum of average wages in every country multiplied by number of employed in every of them... If to count only legally working persons.\n\nADDITION taking into account other answers: currency matter little - almost all products move all over the world now. Another thing that some people evaluate the same services more or less. Mostly because of lower investment into their self-esteem and education... That makes one countries even more poor than they could be.
26308
The amount of money is constantly fluctuating.\n\nEach country regulates its own currency.  If you print too much, the value of your currency will decrease.  The value of the money is based on the country's productivity.  The USA has the biggest GNP at $11.75 trillion.  A country's currency will go up or down in value based on the actions in that country.  If it prints more money, its value will drop in comparison to other countries that are not printing out more money.
501831
They would invest in a variety of markets, not just one, the risk would be hedged and spread among for example, Real Estate, Petroleum, Banking, Forestry, Bonds, Futures, this type of thing, the emerging markets that you mention are all thriving markets now, the volitility has more to do with inflation rather than interest rates. When a market is growing quickly as in the case of China which for 2007 forecasts almost double digit figures and Brazil forcasting 5% to 6% growth, the inflationary forces are what have to be controlled. Brazils elections were recently an eventful occaison but I did notice that the markets ( currency in particular) hardly flickered!  good sign of increased  stability really.
185315
A countries rate of exchange can change for numerous reasons but one topical reason could be the threat of 'terror'. Currency fluctuation work on the supply & demand theory. If no one is demanding (wants it) the currency, then the price will drop. This in turn means that if there is anything negative floating around about a country, then it is very likely that fewer people will want their currency (business & toursism - busniess is the greaterst consumer of international currency). Think of a country as a business and this makes more sense - a business with a lot of bad press or with a level of uncertainty will attract fewer customers/sales.\n\nMany countries still use the US Dollar as the international media of exchange but increasingly this depandance is being reduced as traders/business/Coutries increase their use of the Euro. This is having a real effect on the US economy and a reason that Mr Bush isn't a huge fan of Europe and it's enlargement.
38499
The dollar is not directly linked to the stock market. It is a strong currency in that many developing countries, including China, stockpile dollars to give them some "hard currency" strength. The danger is really the longer-term decline of the dollar versus other "hard currencies" such as the euro and yen. The dollar is also strengthened by its ties to various commodities, such as oil, which is denominated in dollars. If Russia and the Middle East countries begin selling oil to Europe or China for euros or gold dinars in a big way, then the dollar would lose more of that stability. Inflation and investors' currency speculation are additional variables. But it is unlikely that the dollar would crash overnight, because those that you might think would benefit from this (such as China) would actually lose billions and billions overnight if all their dollar holdings lost huge value. Longterm erosion in the dollar value is much more likely.
642550
Some sites say it's the Chinese demand, which continues to grow.\n\nOthers say: The answer to same lies with hedge funds, which are major buyers in the metal and are going to try to hold up the price.
205606
There are already some good answers, but no one has said anything about China.\n\nWe buy so much crap from China, but they buy NOTHING from us. We owe them alot of money, they practically own us.
140092
it's based on demand/supply of the money. It can also be determined by government policy, like when euro first come out.
437200
your teacher is tryig to get you to understand that the lower the value of vietnam's currency, the better its international trade will be because with other countries' currency being more powerful, they will have greater buying power.  so, they will buy more of vietnam's cheap goods.
556856
Both parties will tell you that the economy is sound. Bush says inflation is under control. How can this be true? Everything that I buy is from and Atheist / Communist China. Low quality Junk. Yet it cost more than before. Gas prices are up . Groceries and efreight has gone through the roof. I don.t trust any politician or media anymore.
125839
one answer: currency risk