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We often consider currency exchange rates when we are traveling to another country or when we are trading in shares and debentures. We are concerned about the rates and we want the best for the maximum value of our money. But, what are the factors that affect currency exchange rates? Sometimes, the value of a currency falls and sometimes it goes up. The currency exchange rates keep fluctuating every day.

For a better understanding of the currency exchange rates, you should be aware of the terminology and the factors that affect rate fluctuations. Here, we have discussed these in detail.

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