Currency Fluctuations: The Role of Shifting Demand & Supply
What you'll learn
- How shifts in demand for a foreign currency impact its exchange rate.
- The effects of declining demand on currency depreciation.
- How an increase in currency supply leads to a weaker exchange rate.
- The impact of reduced currency supply on strengthening its value.
- How to analyze and interpret currency fluctuations for informed decision-making
Requirements
- Basic understanding of economic principles such as supply and demand, inflation and interest rates
Description
In an increasingly globalized world, currency fluctuations play a pivotal role in shaping international trade, investment decisions, and economic policies. Currency values fluctuate continuously due to changes in demand and supply in the foreign exchange market. This course provides an in-depth exploration of how shifts in these market forces influence exchange rates and, consequently, economic stability.
Participants will first examine the impact of increased demand for a specific foreign currency and how it leads to an appreciation in its value relative to other currencies. The course will then explore the effects of declining demand, demonstrating how reduced interest in a currency causes depreciation. A key focus will be understanding why exchange rates adjust in response to these fluctuations and how global trade, investments, and economic policies play a role.
Additionally, the course will analyze the consequences of changes in currency supply. When more of a foreign currency enters the market, its value tends to decline due to surplus availability. Conversely, a reduction in currency supply strengthens its value as scarcity drives up demand.
By the end of this course, learners will have a comprehensive understanding of how currency fluctuations occur and their broader economic implications. This knowledge is essential for investors, traders, policymakers, and anyone interested in global financial markets.
Who this course is for:
- Students and any individual who enjoys learning about various concepts of economics
Instructor
- 4.3 Instructor Rating
- 7,072 Reviews
- 211,503 Students
- 157 Courses
Parminder Singh has worked as a legal officer and branch manager with an insurance company owned by the government of India. Partner Puneet has also worked with a government department. Both of them took voluntary retirement and have started providing online education to students. They take pride in providing quality educational services and their aim is to ensure that the students are able to understand each and every question in an easy way. Their goal is to help the leaders of tomorrow learn to succeed today.