In international trade, investment, and global finance, exchange rates are crucial. Exchange rates have the power to greatly impact economic decisions and results for governments, corporations, and tourists alike. The exchange rate indicates the amount of one currency required to purchase one unit of another. For instance, if the euro (EUR) and the US dollar (USD) have a 1.10 exchange rate, then one US dollar is worth 1.10 euros. However, why do these rates fluctuate so much? In a dynamic global marketplace, a confluence of political, economic, and psychological elements hold the key to the solution. A key component of international economics and finance, exchange rates have an impact on everything from the strength of national economies to the profitability of multinational corporations and the price of goods and services across international borders. Tw...