Question

Value of a euro is determined according find cray article

Answer 1

Answer:

Explanation:

The euro has a flexible exchange rate. It means that its exchange rate changes every day. This is because it's traded on the foreign exchange market.

The euro's value depends on three factors. The most important is the European Central Bank's benchmark interest rate. Second, investors take into account the debt levels of individual countries, such as Greece. The third is the strength of the European economy.

Based on these factors, forex traders decide whether they think the currency will increase in value or not. When European economic growth is strong or when interest rates are rising, odds are traders will predict an increase in value. They then bid the price up. Others may read the same data and decide that the value of the currencies will decline instead. These traders bid the price down. The complex interactions of these factors determine the currency's price at any given moment.

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