1. The speed of a country's economic growth is the most basic factor affecting exchange rate fluctuations. According to the macroeconomic theory of Keynesian school, the growth of gross national product will lead to the growth of national income and expenditure. The increase of income will lead to the expansion of the demand for imported products, and then expand the demand for foreign exchange and promote the depreciation of the local currency.

2. Balance of payments This is the most direct factor affecting the exchange rate. The so-called balance of payments is simply the import and export of goods and services and the input and output of capital. In the balance of payments, if exports exceed imports and capital inflows, it means that the demand for the country's currency in the international market will increase, and the local currency will rise. On the other hand, if imports exceed exports and capital flows out, the demand for the country's currency in the international market will drop and the local currency will depreciate.