(1) Balance of payments. If a country has a surplus in its balance of payments, its currency exchange rate will rise; If it is a deficit, the exchange rate of the country's currency will fall. (2) inflation. If the inflation rate is high, the country's currency exchange rate is low. (3) interest rate. If a country's interest rate rises, the exchange rate will be high. (4) Economic growth rate. If a country's economic growth rate is high, its currency exchange rate is high. (5) fiscal deficit. If a country has a huge budget deficit, its currency exchange rate will fall. (6) foreign exchange reserves. If a country's foreign exchange reserves are high, its currency exchange rate will rise. (7) psychological expectations of investors. The psychological expectation of investors is particularly prominent in the current international financial market. According to exchange psychology, foreign exchange rate is the concentrated expression of subjective psychological evaluation of money by both foreign exchange supply and demand sides. If the evaluation is high and confidence is strong, the currency will appreciate. This theory plays a vital role in explaining countless short-term or extremely short-term exchange rate fluctuations. (8) The influence of exchange rate policies of various countries.