namaki
1 Answer
Ed1530
How Currencies Fluctuate,
On a fundamental level, it’s about supply and demand. The dollar is worth more when there are more people who want to own dollars than there are actual dollars (in other words, when demand is more than available supply). When demand for the U.S. dollar drops, that doesn’t mean that people don’t want money anymore. It just means that they want to store their money in a different way (say, they want to keep Euros or yen instead).
| 13 years ago. Rating: 1 | |
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