What are the major factors that would cause the exchange-rate value of a currency to change?

The major factors that could cause the exchange-rate value of a currency to change are: 1. Interest rates: Interest rates set by central banks can affect the demand for the currency, as higher interest rates will incentivize foreign investors to hold the currency in order to get a better return on their investments. 2. Inflation: High inflation rates can decrease the value of a currency as it reduces the purchasing power of the currency in the international market. 3. Economic growth: A country with a strong economic growth rate attracts foreign investment, which increases demand for the currency and raises its value. 4. Political stability: A stable political environment with sound policies can increase investor confidence, leading to more investment and a rise in the value of the currency. 5. International trade: The balance of trade, which is the difference between a country’s exports and imports, can also impact the value of a currency. If a country exports more than it imports, there will be a higher demand for its currency, increasing its value. Overall, these factors can cause a currency’s exchange rate value to either rise or fall, depending on how they affect the demand and supply of the currency in the global market.