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What factors contribute to the change of a country's currency exchange rate?

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What factors contribute to the change of a country's currency exchange rate?

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  1. Demand and supply of that currency in the international market. The demand and supply are, in turn, driven by various factors, including imports/exports (or international trade, in general), capital inflows/outflows, or outright regulations by central banks.

    A rather crude answer, but hope it helps somewhat....

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