what factors are considered by commercial banks and the forex shops in fixing the daily exchange rates?
104042
Well of course one main factor they consider is generating a profit!\n\nWhat they do is they take the currency rate; it is usually active - and not fixed. They then put a spread between the buy and sell price - this is how the forex dealers make money. \n\nSay if you bought US with your currency then sold the US back instantaneously you will find that you may have lost .5 to 3c per dollar or maybe even more because of the spread.
1032101
always go for a currency basket , make changes according to situation and economic data ( $ , euro , gold , swiss , yen)
491558
A country's currency value Vs. another country's currency value is determined by many factors, one is the purchasing demand of one country's currency, in the case of the US Dollar it is so widely popular because many countries rely on it to build their cash reserves, they stock US Dollars in banks so that when they have to pay a loan debt they use that currency, it is also one of the most stable economies, thus the price for 1 USD keeps it's value throughout the world. \n\nWorld economy is changing and now the Euro has more value than the US Dollar, the echange rate is something like 1.30 USD per 1 Euro, the hcines Yuan remains at 8 Yuans per 1 Us Dollar, but in this case the chinese government dictates what the exchange rate is and not the common market value.\n\nStrong economies have strong currency values, weaker economies have weak eschange values in their currency.
994953
The factors that determine the value of a country's currency are\n(1) supply and\n(2) demand
578066
Go to Google.com and type in "currency converter."\n\nIt will give you a currency calculator and you can find the currect exchange rates (they change daily) in any country.
965341
Foreign Exchange works on the same principles as the stock market really.  There are people whose job it is to buy and sell currency, changing the value of those currencies.\n\nFor individuals going on holiday, the difference is not likely to make too much of a difference, but for companies that deal in multi-currencies, this can make a significant difference to income.  For example, as a company in the UK, with GBP(£) as your base rate, but invoicing companies in USD($)\n\nIf the exchange rate in the month is 1.82 $ to the £:\nOriginal invoice of $5,000 =  £2,747.26\n\nIf the invoice is paid in a later month when the exchange rate has dropped to say 1.78 $ to the £:\n$5,000 = £2,808.99\n\nThe Foreign Exchange Difference results in a gain of £61.73.  \n\nYou can see from this example how much of an impact a small change in exchange rates can have on a fairly small invoice.  If the invoice is much larger and the exchange rate goes in the other direction, money can be lost as well.
356979
Using the current exchange rate, about 81 cents per franc
75219
Purchasing Power Parity - PPP \n\nA theory that supports the law of one price. The theory says that the price of one product should be the same across countries. So, the exchange rates should adjust to reflect this 'one-price' scenerio. Otherwise, international arbitage could incur until exchange rates adjust and the law of one price holds.\n\nFor example, if bigmac costs 2 euro in Germany, and the same bigmac costs 100 thai baht in Thailand, then the exchange rate should be 50 baht per euro. \n\nIf baht is depreciated in relative to euro (the exchange rate is more than 50 baht per euro), then Some German people will not buy any bigmac from Germany. Rather, they will import bigmac from Thailand (because Thai bigmacs are cheaper) and resell in Germany to get immediate gains.\n\nSo.. what happens next? Germans will demand more Thai baht to purchase bigmac from Thailand. More demand for Baht currency would result in appreciation of Thai baht... The exchange rates would then adjust until international arbitage is not profitable.\n\nNOTE: the PPP theory assumes no taxes, no transportation expenses, no transportation risks..
871307
Hello.. you can check the Wall Street Journal, which should have the average monthly exchange rate.\n\nYou can also check xe.com.  This has daily rate conversion rate.\n\nCC
307831
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.
290004
Trading in the currency of other countries.
106262
I think you are talking about technical indicators. \n\nWell Charting technical indicators don't only cover Forex but also apply to any market at large.\n\nPeople use moving averages, bollinger charts, fibonacci, MACD and a whole heap of other indicators. These indicators will usually form part of a trading system that traders use to know when they sell or buy.\n\nProfessionals usually make these systems through back testing and experimentation.
76283
Hi there.\n\nRead this article i wrote..hope it will help.\nhttp://www.amazines.com/article_detail.cfm?articleid=76237&Title=forex%2Cbroker%2Ccurrency%2Ctrading\n\nGood luck
476005
Typically, smaller economies grow faster than developed economies as measured by GDP per capita.  The exchange rate, or value of their currency is affected by a lot of different factors including debt, barriers to trade, GDP, trade balance, etc.  All else being equal, if per capita GDP increases, the value of the currency should also increase.
633028
Are you asking in terms of forex trading? In forextrading, the value goes up and down daily. You can get more info at -\n\nhttp://the-forex-trading.blogspot.com
441013
There would be two problems - getting readers that count the foreign currency, and getting up-to-date conversion rates sent to it, so that you con't get cheated by currency rates changing.\n\nYou'd have to set it up so that it either gets an update once per day, say, or like an ATM, it would 'phone home' for every transaction to verify rates.  A daily update would be more efficient.\n\nAnother problem would be displaying the prices.  You'd need a touch-screen with a menu system, first showing a menu of currencies accepted, and then the items for sale (so that you can display the menu in the currency of choice)  If the item menu displays the prices in several different currencies at once, it would be too cumbersome.\n\nHer's another option - say you are returning from Europe with a few Euros here, a few pounds there, some Rials, and a few Rands.  It would be cool to select an item and just start feeding in all those different currencies until the item is paid for, and it spits out change in Dollars or something.  This would make displaying prices difficult, since you are using several currencies to pay for an item, but this would be a valuable thing to have in airports around the world.\n\nInteresting idea.
579720
because trade is based on currency