Exchange Rate Fluctuation Analysis in Kuwait

January 2017 | 4 pages | ID: E6A7DE2B5BCEN
Sadia Saeed

Abstracts

Exchange rate freely floats in comparison of one another that means they are in continuous fluctuation. Currency valuations are evaluated with the flow of the currency inside and outside of the country. High demand of the specific currency normally means that the worth of that currency will enhance. Demand for the currency is set through the tourism, global trade, acquisition and the mergers, speculation and the prospective of protection in form of the geo political certainty. For instance the corporations of Japan sell goods to the corporations in the America and the American based corporations would have transfer dollars to the Japanese yen for the payment, the flow of American currency to yen would show the demand for the Japanese currency. If the complete flow of currency is show by demand of Japanese currency then the yen would enhance in worth. Currencies are traded in the 24 hours in the day. So the supply and demand of the currencies make the exchange rate fluctuates in general terms as when the demand of the specific currency enhances it results in increase in value of the currency and if the demand decreases then the worth decreases. So the demand and supply factors make the currency of the different countries to fluctuate (Investopedia, 2015). Cont... (1500 words of this report)

Contents

1. REASON OF FLUCTUATION OF EXCHANGE RATE

2. APPRECIATION OF US DOLLAR

3. INFLUENCE OF APPRECIATION

4. USD AGAINST KWD IN 2015

5. INFLUENCE OF EXCHANGE RATE FLUCTUATIONS

References