currency fluctuations

Currency fluctuations refer to the changes in a nation's currency value relative to other currencies. These shifts occur due to various factors such as economic indicators, interest rates, political stability, and market speculation. When a currency appreciates, it becomes stronger, making imports cheaper and exports more expensive. Conversely, a depreciation causes the currency to weaken, making exports cheaper and imports more costly. These movements impact international trade, investments, and travel costs. Overall, currency fluctuations are part of the normal functioning of global financial markets, reflecting the dynamic and interconnected nature of economies worldwide.