Currency fluctuation refers to the changes in the value of one currency compared to another over time. These changes can be influenced by various factors, including economic conditions, interest rates, inflation, and political stability. For example, if the economy of a country is strong, its currency, like the US Dollar, may increase in value against other currencies, such as the Euro. These fluctuations can impact international trade and investments. When a currency strengthens, exports may become more expensive for foreign buyers, while imports become cheaper for domestic consumers. Conversely, a weaker currency can boost exports but make imports more costly, affecting businesses and consumers alike.