有什麼因素會令國際貨幣匯率上升和下跌?

1. Fundamental factor of the economy: Stronger the economy e.g China has strong economic growth in recent years, the stronger the currency.
2. Interest rate factor: Higher the interest rate of a country, the stronger the currency e.g. Aussie and New Zealand rose significantly against yen in 2007 as Aussie and New Zealand interest rates are 6.75% and 8.25 respectively, much higher than that in Japan (0.5%)
3. Amount of foreign reserves: Larger the foreign reserves a country hold, stronger the currency e.g China has the largest foreign reserves on world.
4. Funds flow direction: More funds flow into than out of a country, the currency will appreciate.