Foreign Interest Rates and Purchasing power?
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I would suggest not getting a trading account until you learn what these terms mean.  Also never open a trading account in a foreign country.  You may never get your money back.
1165609
to a great extent.\nrise in intertnational fuel prices and interest rate hikes by US are keeping investors off emerging markets.
1079429
Well if you are looking for emerging trends in banking and in financial services I would have to say one of the major trends is to go into the overseas/developing/emerging markets. Doing deals and making investments in these relatively new and developing countries is a bit volatile and they have gotten their clock cleaned this year...but overall the sentiment seems to be to go to international to lesser developed economies.
516270
I like this question and feel stupid that I don't know the answer. I should have taken that class on Central Banks. My guess is that it is a combination of the money supply, interest rates and government assets held (tresuries) by other countries.
1128953
There are many types of foreign exchange.\n\nOne is a monetary exchange rate.  Another is an exchange of students.  There are also Foreign Stock exchanges and others.\n\nDid you have one in particular in mind?
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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.
470900
Purchasing power measures the value of money in terms of the quantity of goods and services it can buy. The purchasing power of money changes over time and is affected by the rate of inflation. If prices increase, the purchasing power of money declines. Thus, for a person to increase purchasing power, their income must increase more than the price of goods and services. \n\nTo compare purchasing power from different years, an index such as the Consumer Price Index is often used. Different time periods can be compared against the current period to see how purchasing power has changed.
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The factors that determine the value of a country's currency are\n(1) supply and\n(2) demand
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The U.S. Census has your answers!\n\nThe closest information you can find is in the 2006 Statistical Abstract of the United States:\nhttp://www.census.gov/prod/2005pubs/06statab/foreign.pdf\n\nCheck tables 1276 and 1281 for current foreign investments and holdings in the U.S.
253236
These rates aren't very high compared to the 80's when there double digits. I think they will climb to around 8% or so. The constent slow down of the real estate market will result in over supply with less demand. Maybe in order to increase purchases at the present higher than they ought to be prices the Feds will lower the interest rates to seduce buying.
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Adjusted to the US CPI (Consumer Price Index) for inflation, 2.5 million dollars in 1961 would represent purchasing power of $15,592,407.14 at the end of 2005.\n\nThis is the best way to calculate purchasing power, as rates of return vary all over the spectrum depending on investment type, risk level, etc.  \n\nYou could also have bought Enron stock along the way and lost it all.  So, for most examples, CPI adjusted values are the best method of estimating current value of past monetary values.\n\nI hope this has been helpful.\n\nP.S.  Add 1.4% to adjust from year-end 2005 to June 1, 2006.
327470
just search on this FOREX it will give you some sites where u can learn more about investing in foreign money
819019
It's a market. Countries, banks, companies buy and sell the currencies the need for their business and the law of supply and demand determines the exchange rates.\nThere are a few exceptions: a lot of currencies are not convertible outside the country where they are issued, and some currencies like the Chinese Yuan are pegged to the dollar, meaning that the exchange rate fluctuates only between small boundaries.
785998
False.  Inflation decreases your purchasing power.  And it also decreases the value of your debt.
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Technically, money supply is not inflation - but it is empirically associated with inflation.  \n\nInflation is typically taken from a consumer price index from a fixed basket of goods and services. While UK M1 rose 14.5% on broad measures for September 2006 (but only 5.1% on narrower measures), consumer prices rose 2.4% in October '06 (vs. 2.3% last year).  \n\n\n\nYou are right to point out that the market is awash in liquidity. Money comes from numerous sources - at its basic core bills, coins, checking and savings.  But the broader money supply (which is the one that matters) includes many other supplies - like the capital markets. \n\nWhere is all this cash coming from?  \n\nFirst and foremost, it is coming from loose monetary policy, residual from low interst rate environment post-9/11.  As interest rates went to 40-year lows in the US, Japan and Europe, borrowing costs got so cheap as to be extremely cheap.  This trigger asset reflation in real estate and commodities. Indirectly, it also help spur corporate earnings growth (double digit in the US, whereupon 7% is more like the average growth).  The asset reflation also gave consumer a base to start borrowing from, dipping into equity saved up in their houses. \n\nSecondly, the typical brake on liquidity - government bonds - has not been working.  Typically, centralized banks and treasuries issues more paper in order to soak up excess liquidity in the system.  For example, the US had to issue lots of new debt in 2005 to cover the costs of post-9/11 security and the two wars.  However, large trade imbalances have lead Asian and Gulf countries to purchase large amounts of these issues to 1) stabilize interest rates in countries with fixed or quasi-fixed currency regimes (e.g. China) or keep interest rates stable in those markets with floating currencies.   \n\nSo money supply has surged but without the surge in wages (revenue-side inflation) or prices (cost-side inflation).  How?  Basically, we are seeing a tsunami of capital formation - not at the consumer level - but at the corporate, government and asset level.  We are already seeing the side-effects of this capital formation through the emergence of private-equities, rise of hedge funds and record pace of corporate earnings. \n\nWhile we b*tch and moan about inflation at 3-4%, clearly we have short memories.  Woe were the days back in the 80s when itnerest rates were in the twenties or the seventies when we had to wait in line for gasoline and prices went up so fast that they didn't bother posting the price.  \n\nEverything is relative.  It hurts pretty bad going from a very long period of almost no inflation to "normal" inflation.\n\nBy the way... the US still publishes its M1 and M2, but discontinued M3.
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They don't exist (not in the US at this time).  Interest rates on savings accounts reflect market interest rates.  If the fed funds rate is 3.75%, then the savings account rates will have to reflect this relatively low interest rate.\nHigher returns are associated with taking on higher risk.  To earn 10%-12% interest rates, you will need to invest in something riskier, like the S&P 500, which has, over the long term, generated a rate of return between 10% and 12%.\nAnd, don't think that if a savings account in England (as an example) is paying 10%, you can just convert your dollars to pounds and invest in the English savings account.  The differential rate of return is already built in to the exchange rates (spot rate and forward rate) between the two currencies, courtesy of the world markets and something called arbitrage.  Arbitrage will instantly wipe out that differential rate of return by a compensating change in exchange rates.
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Major currencies prices are decided by supply and demand factors..like the dollar, euro, etc..these are free float currency..\n\nsometimes currencies are regulated by the respective governments..like the yuan..\n\nOtherwise interest rates and inflation also have a bearing on the currency prices