Talk:Exchange rate

Changed the example. The PRC government states that its policy is to have the RMB trade within a narrow range with the US dollar, but it is not formally a peg. The HK dollar is formally pegged to the US dollar.

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Can we have some explanation as to why exchange rates vary? Clearly, at a particular time, some people will prefer to have their wealth denominated in yen rather than dollars, and vice versa - hence the market. So specifically, I'm asking for reasons why a person would choose to transfer their money from one currency to another. What makes one good, and another less good?

Why do they vary? The first things that come to mind are:

• Central bank open market operations
• changes in relative interest rates between the countries
• Changes in balance of payments and balance of trade
• changes in inflation rate and money supply
• short term currency flows (ie. corporate profit repatriation)
• hot money flows (speculators) (political uncertainty)
• growth rate
• yield curve
• almost any other piece of economic data that is released

The complete list would be very long. mydogategodshat 03:07, 9 Feb 2004 (UTC)

Contents

1 Quotation 2 Bear market 3 Move 4 Mechanics of trading 5 Top traded currencies 6 Fluctuations in exchange rates 7 External Links

Quotation

Hi, the paragraph about quotation has to be rewritten, but I dont want to overwrite somebody else's stuff. So, since I'm still new, how do you handle this? Overwriting and waiting what happens or discussion?

Cheers a random user...

Welcome to Wikipedia. Be bold to editing. Anything you edit can always be reverted if necessary.

Roadrunner 19:01, 9 Jun 2004 (UTC)

Rewritten to remove contradiction & to agree with [1] (http://www.inlandrevenue.gov.uk/manuals/cfmmanual/cfm7011.htm). But does anyone use 'price currency' and 'unit currency' outside Wikipedia? Andy G 22:34, 15 Dec 2004 (UTC)

Bear market

"In the foreign exchange markets there is never a 'bear' market." A currency can enter a bear market. In any transaction there must be a buyer and a seller. In that sense the world market can never enter a bear market. - Jerryseinfeld 22:39, 18 Dec 2004 (UTC)

Move

Move this article to currency market or something like that. - Jerryseinfeld 05:27, 19 Dec 2004 (UTC)

• vote for move Currency Markets
• absolutely not Bluemoose 18:05, 6 Mar 2005 (UTC)
  • There used to be a redirect from Foreign exchange market to this page. I udnerstand that "Currency MArkets" and "Exchange Rate" are two seperate topics. I have removed the redirect and later, that page has been designated as a economy stub. Please feel free to improve Foreign exchange market.doles 00:38, 2005 Mar 7 (UTC)

Mechanics of trading

This section needs a re-write, but since finance is not my strong point I'll leave it to someone who is more of an expert on the topic. I have made a few edits which hopefuly will make it more encyclopedic. I deleted the last paragraph which was non-NPOV and seemed like a marketing blurb cut and pasted from a currency trader's website.

The paragraph beginning "It is possible for investors to speculate on currency..." was poorly written as it used too many exclamation marks, and phrases like "you are very happy!" and "nice fuzzy feeling". I have attempted to improve on the style and make it more encyclopedic. --Peter 02:17, 4 Apr 2005 (UTC)

Top traded currencies

The table which shows the top most traded currencies says that 1st is USD then JPY and THEN EUR, but if I'm not mistaken (IF I'm not, I not saying I right) Euro is traded more than Japanese Yen. Can anyone clear this up for me. - Gerbon689 13:10, 17 Apr 2005 (UTC)

Fluctuations in exchange rates

I suggest we remove the following line from paragraph 4; "When China announced plans for its first manned space mission the price of the Yuan jumped." The Yuan is pegged to the dollar, therefore, how does it jump? Googling failed to reveal any news articles reinforcing this statement. --Danrdanny 12:16, 25 Apr 2005 (UTC)

good catch! That is very misleading. I'm assuming the contributor for that blurb meant the synthetic yuan futures.... I'll see if I can fix/clarify. Feco 22:59, 29 Apr 2005 (UTC)

External Links

I cleaned up the link section with two goals in mind:

1. reduce the use of this page as a google pagerank manipulation- the descriptive terms attached to the links shouldn't be obvious google fodder... I tried to change them to reflect who/what was on the linked paged.
2. I cleared out obviously commercial links... several pages provided cross rates, but some of them were just the bait to a trading platform. Why list eight different sources of cross rates when we already have two or three comprehensive sources that aren't just the cover page for a trading site?

Feco 19:19, 21 Apr 2005 (UTC)