In the deep talk Forex Rates is happy to answer the first important point that why we need the conversion of currency?
Here is one simple example where you can understand easily: “let us consider Mr. A is a U.S. Investor and he want to invest in Indian Market (or any Company) then the knowledge of currency rates today will be valuable for him in future and he will invest accordingly”.
(And for any currency conversion Forex Rates is best tool we can use in online market.)
So here we got the knowledge of need but how we calculate foreign exchange rates is another main question arises in our mind?
According to one survey of Forex Rates, there are many political & economic causes that affect the Foreign exchange rates between two or more countries, but the most popular aspects are: Interest rates, unemployment rates, inflation reports, gross domestic product numbers and manufacturing information, import and exports etc.
Forex Rates Understands the main factor which directly hits the currency rates are SUPPLY and DEMAND, which means how much you export from your country and how much you import from another country, this import and export factor change the whole scenario of Foreign exchange rates
The Conclusion from Forex Rates will be the worldwide nations which having a WEAKER currency in worldwide market implies they import more than fare and the nation which having STRONGER currency in worldwide market implies they send out more than import.
There is also one optional but listed in one of the main category of important factor which Forex Rates like to share:
FIXED RATE which is agreed by countries and maintained by governments, it can be changed by government depend on many factor which is measured by the countries and some times change on revaluation dates.