e.g; why is the pound worth nearly double the dollar???
How does the exchange rate work???
In 1900, the pound was worth 10 dollars! But people want dollars more than pounds, so they%26#039;re more valuable. They want dollars more than before because:
a) they want to buy stuff from the USA;
b) they want to invest in the USA;
b) they think dollars will be a good investment - i.e. they%26#039;ll be worth more than 50p in the future.
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