Eli5: what causes one currency to gain or lose value compared to another?

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I just read that the yen is really weak right now. In 2017 the euro was worth about 1.20 to 1.40 if I remember correctly (when I visited France.). Last year it was about 1:1.

What causes this fluctuation?

In: Economics

2 Answers

Anonymous 0 Comments

When you want to sell your product intenationally the buyer have to buy your country currency to do so. If your country have to buy more than sell it puts their currency in weaker position

This is why USA is meddling in affairs of whole world. They just keep everyone invested in US dollar and keep international trade (of oil, gold and other minerals) in USD.

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