Main Factors That Influence Exchange Rates

Everyday we keep on seeing the change in the rates of different Currencies of different countries. it almost happens almost daily that Dollar Goes up or down in comparison to other Currencies or sometimes the Euro Comes Down or the Value of Pound Increases and it happens continues each and everyday and hour. But has you ever thought that what are the reasons that these changes keeps on coming in value of different Currencies? why Dollars goes up or goes down or why Euro increases? there are many reason that effects the  Exchange Rates of different Currencies. i will be writing on some of the main reason that puts their  Influence on the Currency Forex rates? Last Month in Pakistan Dollar was of 83 Pakistani Rupees and now it is of 86 RS so what are the main reasons that Exchange Rates of Dollar and Pakistani Rupees changed 2 RS? So here are the main reasons for this..

The Main reason for this is the Inflation in any Country. if there is more inflation somewhere then it will must effect the Exchange rates of that Country for more income and RS or Dollar will go up and down time to time. Interest Rates of Banks also puts their effects on the Exchange Rates. Sometimes the Banks Interest Rates increases and sometimes it goes down for example at present in Pakistan the Interest rate in Banks is 13.45%. Current-Account Trade Balance of collection of State Bank and all the total banks of a Country which by going up and down puts its effect on the Exchange Rates of a country by time to time. Public  debt is the fourth reason for the change in the Forex rates of a Currency. How many Debts Public of a country has taken or return to banks after taking and giving? a very major reason is Political and Economic Factors of a Country. Political Conditions of a Country seriously effected the Currency rates of a Country because investment and money change reduces if there is more tension in a place. So these are main reasons for the That Influence Exchange Rates that keeps on increase interest..