Foreign Exchange Rates News and Trends
Check out current forex rates and analysis from trusted news sourcesForeign exchange, or forex, trading is the largest market in the world -- in 2007, over $3 trillion changed hands each day. There is no central forex trading floor like the New York Stock Exchange for stocks or Chicago Mercantile Exchange for commodities. Instead, banks and brokers made trades by phone and over the Internet. These decentralized, international trades take place 24 hours a day, five and a half days each week.
That means as traders in New York are going to bed, traders half-way around the world in Tokyo and Hong Kong are just waking up. Currency exchange rates fluctuate constantly, depending on the state of a country's economy and political situation, and likely international demand for its goods. Technically, any person who changes money on vacation dips into the forex market; but the major players include:
1. Central banks, which may participate in the forex market to influence its country's currency rate.
2. Banks, which trade with one another with through the interbank system to profit from fluctuating foreign exchange rates.
3. Large companies that do business abroad. Sometimes, these companies even have their own foreign exchange trading desk.
Get current foreign exchange quotes from trusted news sources
Read blogs that discuss currency rates and trading tipsThere are innumerable blogs that claim to help readers make a quick buck from currencies trading, which readers should ignore. But there are also blogs that give solid advice on currencies trading and offer helpful tips.
Go straight to the source to learn how monetary policy affects foreign exchange currency ratesGovernment financial institutions have a role to play in influencing a currency's foreign exchange rate. A strong currency increases a country's purchase power abroad, but makes its own goods less affordable to foreign buyers. A weaker currency may encourage foreign purchasing.
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