How can the value of a currency go up or down? Surely £1 will always be worth £1 and $1 will always be worth $1?

Question

How can the value of a currency go up or down? Surely £1 will always be worth £1 and $1 will always be worth $1?

In: Economics

Answer 1

But $1 isn’t always worth £1.20. As the value of one currency changed relative to others, that affects the costs of imported goods and things made from imported materials.