Currency Exchange Rate Influences

The rate of exchange between one country's currency and those of other countries both impacts a given economy and is impacted by it, and similarly ties in with interest rates. A currency will tend to be stronger when the economy is strong in comparisson to others and weaker when the economy is comparatively less strong. At the same time, exchange rates directly impact trade and investment.
Trade is often spoken about as the primary factor in foreign exchange. Also important are:
Interest rate spreads
Comparative prices.read more......