All else being equal, the greater the demand for a currency, the higher its price; the lower the demand for a currency, the lower its price.

Question

Quizplus · Accepted Answer

In foreign exchange markets, the price of a currency is determined by its demand and supply. Higher demand for a currency relative to its supply increases its value (price), while lower demand relative to supply decreases its value.

All Else Being Equal, the Greater the Demand for a Currency