Currency fluctuation

Currency Fluctuation

A change in an exchange rate. If the British pound is worth $2 on Monday, and $1.80 on Tuesday, a (somewhat dramatic) currency fluctuation has occurred. Currency fluctuations happen constantly and occur for all floating currencies.

Currency fluctuation.

A currency has value, or worth, in relation to other currencies, and those values change constantly.

For example, if demand for a particular currency is high because investors want to invest in that country's stock market or buy exports, the price of its currency will increase. Just the opposite will happen if that country suffers an economic slowdown, or investors lose confidence in its markets.

While some currencies fluctuate freely against each other, such as the Japanese yen and the US dollar, others are pegged, or linked. They may be pegged to the value of another currency, such as the US dollar or the euro, or to a basket, or weighted average, of currencies.

References in periodicals archive ?
The automaker is taking this step to offset the impact of rising input costs and currency fluctuation.
The conference report for the Fiscal Year 2005 Consolidated Appropriations Act required that we review the past and current methodologies used by the American Battle Monuments Commission (ABMC) and the Office of Management and Budget (OMB) to estimate exchange rates used in preparing the budgets for ABMC's foreign currency fluctuation account.
Currency fluctuation also impacted the European market in other ways, ranging from pricing to sourcing strategies.
The 2002 draft legislation finally addressed the treatment of hedging transactions relating to foreign currency fluctuation.
Currency fluctuation is just one of many variables the company continually manages around the world, including commodity costs, labor inflation, trade laws, and product sourcing.
This option is often the safest bet because, in the long run, the issue of currency fluctuation is functionally neutralized without having an impact upon any given purchase or sale.
This timing rule can force the recognition of large taxable gains due to currency fluctuation that do not reflect the overall economic picture.
Partially offsetting these positive rating factors is the company's exposure to currency fluctuation, which due to the strengthening of the Canadian dollar, has negatively impacted earnings; its exposure to product risk due to its high level of secondary guarantees in its North American variable annuity products; and potential catastrophe exposure in its reinsurance segment.
Such factors include continuation and renewal of existing license agreements, effectiveness of sales and marketing efforts and product acceptance by consumers, dependence upon management, competition, currency fluctuation and international tariff and trade barriers and governmental regulation.
7 percent in the third quarter 2013, for the second year running, the company said Monday, blaming currency fluctuations for the dive.
Kuwait : Kuwait telecom giant Zain's net profits dived 14 per cent in the second quarter of 2013, the company said yesterday, blaming currency fluctuations from its unit in Sudan.
Revenue was positively impacted 11% by foreign currency fluctuations.