Forex Rates

Written by BK Shaw
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If you look in the business section of your newspaper, you will see the forex rates, which are continually adjusting based on supply and demand of the currency. You can also find up to the minute rates listed online. And of course, failing everything else, you can also go to your local Thomas Cook or Bureau de Change for accurate cash currency rates.

Obviously the forex rates in the futures markets are different to the rates available for converting cash currency or rates on the spot global forex markets. They are called the futures markets, not the "yesterdays" markets. As the name suggests, the futures markets are always looking forward anticipating where the cash prices will be.

For a long time, the U.S maintained a strong dollar policy, which allowed nations like the Japanese to export more goods. The economy in the U.S is driven primarily by consumer spending, and so a strong dollar provided a good solution to ignite U.S consumerism while helping to prop up the Japanese economy. This is an example of how forex rates can affect the global economy.

Profiting from Forex Rates

I used to buy currencies of countries whose economies were driven by tourism. I would buy in the low season, and sell in the high season. As a young adult with little spare funds, I didn't become wealthy overnight, but I learned to make a little extra spending money for those all important holidays abroad. There are several vehicles available for you to exploit currency fluctuations; find one that works for you!

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