Most Forex converters are pretty straightforward and easy to read. Currencies are usually traded in pairs and most Forex Converters give current quotes in pairs. Most also have the ability to convert specific amounts of one currency into another. But what are the factors that make one currency more valuable than another? What causes the value of a currency to rise and fall?
First, who determines currency value? Currency value is generally determined by central banks, investors and Forex traders, and the laws of supply and demand. Central banks and large banks account for most of the world’s trade in currencies. Central banks set monetary policy that affects the value of that nation’s currency.
