Understanding Currencies and Exchange Rates
A country’s attractiveness to investors can affect what its currency is worth.Stable countries are considered to be attractive destinations for investments. The more that people want to invest in a country, the more that country’s currency will appreciate or be worth. This is because investors from other countries need to use that country’s currency in order to invest. For example, a French person who wants to invest in the South Korean stock market needs the South Korean won to do so. This demand for won drives up its value.The opposite...
