why has U.S. currency increased now?

and euro currency decreased?

PLEASE HELP ME I HAVE A TEST !!!

The question is outdated.

US Currency is currently decreasing in value relative to the Euro. The reason is that The Federal Reserve has announced a limited policy of "quantitative easing" (buying its own low-interest bonds back from banks to increase money in circulation)

comparing from a month ago, the us. currency has increased..so my question was why has it decreased?sorry if i wasn;t clear!

why do currency increase and decrease in general?

THank you so much!

I have never understood it, but there may be some information in here that will help you:

http://www.google.com/search?q=why+currency+increase+decrease&hl=en&num=10&lr=&ft=i&cr=&safe=images

Sabrina: The question is several years out of date.

To understand why U.S. currency has increased while the euro currency has decreased, it is important to consider various factors that affect currency exchange rates. While I cannot provide real-time data or specific reasoning for current market trends, I can explain some general factors that may contribute to these fluctuations:

1. Economic Performance: The strength of a country's economy often influences the value of its currency. If the U.S. economy performs well compared to other countries (like the eurozone), investors may be attracted to U.S. assets, leading to an increased demand for U.S. dollars and a strengthened currency. On the other hand, if the eurozone economy experiences setbacks, it can weaken the euro.

2. Interest Rates: Central bank policies and interest rates play a significant role in currency valuation. If a country's central bank raises interest rates, it can make their currency more attractive to investors seeking higher returns. Higher interest rates in the U.S. compared to the eurozone can contribute to a stronger U.S. dollar and a weaker euro.

3. Political Stability: Political events, such as elections, government policies, or geopolitical tensions, can impact currency values. Uncertainty or instability in a country can lead investors to sell its currency, causing its value to decrease.

4. Demand and Supply: Supply and demand dynamics can affect currency exchange rates. If the demand for a currency exceeds its supply, its value may increase. Conversely, if the supply surpasses the demand, the currency's value may decline.

Please note that currency exchange rates are influenced by numerous complex factors, and the specific reasons for recent movements would require up-to-date analysis. Consulting financial news sources or seeking professional advice would provide current and more accurate information for your test preparation.