(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.