In the present day, the value of a country’s currency reflects
The productive capacity of that country’s economy
The military and political strength of that country
Whether the country has a trade deficit or trade surplus
The demands for that country’s goods and services
1 answer
The value of a country's currency reflects a combination of factors, including the productive capacity of the economy, the country's trade balance (whether it has a trade deficit or surplus), the overall demand for the country's goods and services, as well as geopolitical and economic stability, inflation rates, interest rates, and the overall economic health of the country. Additionally, the value of a currency can also be influenced by speculative trading and market sentiment.