Why Foreign Exchange rate often Vary?

Foreign exchange market often called as forex market has an unstable market infrastructure in anywhere in the world. Foreign exchange is the process of changing a foreign currency for a country’s home currency. This rate will change according to the global economic infrastructure and policies of various foreign governments. When we take India as an example, India is listed in first position for acquiring foreign money in a large scale. India’s leading foreign money source is USA followed by Saudi Arabia, Russia and Australia. Country have more than six main cities with advanced potential forex market and economical standards.

For an example,
choose Delhi, It is the most populous city in India. Dollar exchange rate in
Delhi
changes every day because of foreign market influence. When the amount of selling of foreign money will determine the hike of that currency in particular
market. Sometimes an increased buying of a particular foreign currency will
increase the demand of that currency in potential market. When 1$ = 66 INR,
then a situation arose like oil price down then all currencies will come down
from their previously recorded rate. Forex Rate will increase or decrease based
on foreign market conditions.


A country can acquire foreign currency by exporting goods, Tourism and foreign employment. When a foreigner visits a place, he/she would convert the foreign currency to home currency. Tourism is one of the easy method to acquire foreign currency. Most of the countries are promoting tourism for this sole purpose.