How is pricing determined for certain currencies?

The complete range of industrial and political conditions impact currency pricing. It is usually held that IRs, inflation rates and political stability are top among significant factors. On occassion, govts take part in the currency market to persuade the traded cost of their currencies. These and other market factors like very big orders can cause acute relative volatility in currency costs.

The sheer size of the currency market forestalls any single factor from dominating the marketplace for any period of time

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