Q:

What are live currency rates?

A:

Quick Answer

Live currency rates are used to track and convert the fluctuation of foreign exchange rates in real time. They are often available on international trading websites and updated every few seconds to provide live data in the format of table charts.

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What are live currency rates?
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Full Answer

Foreign exchange rates are determined by the global supply and demand of individual currencies on individual markets. If a country's currency prices goods at increased total expenditures for foreign currency holders, then foreign speculators are likely to value that country's currency at greater worldwide demand. Central banks may also influence the exchange rate by purchasing foreign currencies with rising value.

Currency supply is influenced by demand for investments by nations using other currencies in foreign trade. If foreign speculators predict that a currency's value will soon fall, the speculators may supply the currency back to the global market for future investors. When a currency exchange rate does decrease, its value weakens in comparison to other currencies whose values then strengthen.

Because exchange rates consistently change, live currency rates are useful tools for foreign exchange traders who influence international economic development. A nation with a strong economy and financial stability appeals to currency holders seeking to invest overseas, which ultimately benefits the nation when its currency grows greater in demand.

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