Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FM

Foreign exhange rates

draiellesdraielles5y ago
Kindly explain how capital nature transactions influence Fx rates in terms of supply and demand
John MoffatJohn MoffatTutor5y ago#1
Just as with everything, then if demand for a currency increases then the price of the currency (the exchange rate) will increase. If everyone is buying flowers for Valentine's Day, then the price of flowers increases. The same thing happens with currencies :-)
Sign in to reply to this topic.