UK pound
UK pound iStock

Foreign exchange rates are constantly changing, and this change in currency value primarily depends on demand and supply as in the case of anything else.

Given below is a chart produced by NeoMam Studios and Hiway Fx, detailing six main factors that influence exchange rates.

The factors are government intervention, inflation, interest rates, current account deficits, government debt and speculation.

6 Factors that Influence Exchange Rates