(1) Balance of payments.

(2) Inflation rate. Every country has inflation. If its inflation rate is higher than that of foreign countries, its currency will depreciate and the foreign exchange rate will rise.

(3) interest rate. The influence of interest rate level on foreign exchange rate is that short-term capital flow leads to the change of foreign exchange demand through the difference of interest rate level in different countries.

(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 international financial market.

(8) The influence of exchange rate policies of various countries.

The exchange rate of extended data refers to the ratio or parity between one country's currency and another country's currency, or the price of another country's currency expressed in one country's currency. Exchange rate changes have a direct regulatory effect on a country's import and export trade.

Under certain conditions, the devaluation of the local currency, that is, lowering the exchange rate, will promote exports and restrict imports; On the other hand, the appreciation of the local currency, that is, the rise of the exchange rate, plays a role in restricting exports and increasing imports.

References:

Baidu encyclopedia-exchange rate