From an economic point of view, money, like any product, has its own value, that is, the rate. The exchange rate of any currency is determined by the ratio of two key links: supply and demand, which, in turn, are influenced by a wide variety of factors. These factors can be both economic and political in nature. For example, inflation rates, the structure of the balance of payments, the level of confidence in the currency, currency speculation, the foreign exchange policy pursued by countries, and also the breadth of the use of foreign currency in conducting international settlements may become causes of currency rate fluctuations.
A variety of factors affecting the exchange rate, sometimes leads to a mismatch of the exchange rate and its real value. In the context of the financial crisis, it is very important to keep abreast of various changes in the field of finance. For this purpose, you can use the services of various sites with relevant information. One of the leaders today is the financial portal , which provides up-to-date information on the state of the financial market in real time.
If we look directly at the US dollar, then its exchange rate depends, first of all, on gold reserves in America. The larger these reserves, the more stable the dollar exchange rate behaves. The course is also influenced by how debtors repay loans taken from US banks. For example, the crisis of 2008 was caused by such debts.
In general, the behavior of the dollar is so unpredictable that no specialist can predict it at 100%. The reasons for sharp fluctuations in the exchange rate in a particular country can be combined into two enlarged groups: internal and external factors.
External factors include changes in world oil prices. Thus, an increase in oil prices leads to a depreciation of the dollar, and vice versa. Another key factor is the dollar exchange rate in relation to other currencies. For example, if the dollar falls against the euro, then it decreases against the Russian ruble.
Internal factors include circumstances that affect the dollar exchange rate within the country. One of them is foreign exchange demand. A sharp increase in it causes a corresponding increase in the rate. The limitation of such processes is usually foreign exchange intervention. Another internal factor is the stability of the economic and political situation in the state. In times of crisis, public confidence in national banknotes decreases, and people begin to actively buy dollars, which leads to an increase in its exchange rate.
Despite the fact that today the dollar is considered the most widespread international currency that is trusted in many countries, experts, based on data from the last 10 years, argue that today it is in a very weak position. In this regard, exchange rate fluctuations are simply impossible to predict with any accuracy.