What actually causes currency to lose value?
I understand that basically a bad economy leads to it, but can anyone explain to me in a technical sense, what causes for example the euro to exceed the dollar in value?
I don't care how dumb I look for asking this I just want to know :downs:
If there is a decrease in demand for the goods of a nation, and a decrease in investment (people trade currencies just like they trade stocks), currency will lose value.
There's a lot of factors, like unemployment, etc. but there's the two big ones that I remember.
and its all really relative to what is going on in other nations.
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