Saturday, October 12, 2019

Understanding the Exchange Market Rate - Pound to US Dollar (GBP/USD) E

The fluctuation or well known as the exchange market is the rate at which one currency will be exchange for another. It also regarded as the value of one country’s currency in the terms of another currency. The fluctuation was determined in the foreign exchange market (Wikipedia, 2014). The fluctuation rate is not permanent sometime in one day the fluctuation rate can change from high to low and from low to high. Hard currency is any global traded currency that is expected to serve as a reliable and stable store of value. The factor contributing to a currency hard status might include the long term stability of its purchasing power, the associated country’s political and fiscal condition and outlook and policy posture of the issuing central bank (Wikipedia, 2014). The two currency that can be taken as the hard currency was the United States Dollar and also the Great Britain Pound. These two currency is very popular and also important in the way to contribute to the exchange rate in foreign exchange market The United States Dollar (USD) or its sign was ($) is referred to as the U.S Dollar, and also as the American Dollar. It is the official currency to the Unites States and its overseas territories. The currency of United States Dollar was divided into 100 smaller units called cents (Wikipedia, 2014). The United States Dollar is often used in the traded process because of its high value. There were five major reason of why the U.S Dollar is so widely used in the traded. The reason is as below: †¢ It’s an investment currency in many capital markets †¢ It’s a reserve currency held by many central banks †¢ It’s a common transaction currency in many International commodity market †¢ It’s an invoice currency in many contracts †¢... ...ttp://en.wikipedia.org/wiki/Pound_sterling [ 3 April 2014 ] 10. Wikipedia ( 2014 ) Fluctuation from http://en.wikipedia.org/wiki/Fluctuation [ 2 April 2014 ] 11. Wikipedia ( 2014 ) Exchange Rate from http://en.wikipedia.org/wiki/Exchange_rate [ 2 April 2014 ] 12. Wikipedia ( 2014 ) Interest Rate from http://en.wikipedia.org/wiki/Interest_rate [ 3 April 2014 ] 13. Wikipedia ( 2014 ) Speculator from http://en.wikipedia.org/wiki/Speculation [ 2 April 2014] 14. Wikipedia ( 2014 ) Government Debts http://en.wikipedia.org/wiki/Government_debt from [ 5 April 2014 ] 15. Wikipedia ( 2014 ) Economic Interventionism from http://en.wikipedia.org/wiki/Economic_interventionism [ 2 April 2014 ] 16. Wikipedia ( 2014 ) Economic Growth from http://en.wikipedia.org/wiki/Economic_growth [ 6 April 2014 ]

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