Currency fluctuations and price fluctuations are important because investment, especially foreign investments, without considering these fluctuations, brings the possibility of great loss. Because such a risk may cause the loss of capital. By using analytical charts in the field of price fluctuations and their analysis, we can predict the price future of the target market and make a safe investment.
The Nature of Price Volatility
As we know, the price of goods and services in the market is not stable. Prices are always decreasing or increasing under the influence of various factors such as supply, demand, political and economic currents, etc. The process of price increase and decrease in a certain period of time is called price fluctuation.
Reasons for Price Fluctuations
Price fluctuations are directly related to supply and demand. In this way, the lower the demand for a product, the lower the price of the product, and the lower the supply of the product, the higher the price of that product.
On the other hand, the more the demand for a product in the market increases, the price will also increase, and the more the supply of the product in the market exceeds the needs of the buyers, the price will decrease.
Types of Price Fluctuations
We are experiencing severe price fluctuations in 6 important markets, which we will examine further.
1. Dollar Price
Dollar is one of the most important currencies that is always subject to many transactions. The price of the imported dollar has undergone drastic and profound changes, and in recent years, these changes have been accompanied by a steep slope and exponential growth. Currency fluctuations, especially the dollar, are largely affected by political currents, however, the influence of dealers in this area should not be neglected.
2. Bitcoin Price
Bitcoin is one of the branches of digital currency. Today, most people who are engaged in business around the world, especially international business, use Bitcoin for their transactions. The charts of Bitcoin price fluctuations show that in the last few years, we have faced a significant growth in this regard.
3. Gold Price
In relation to gold price fluctuations, we should have a relative look at its price fluctuations. Because in recent years, we have not faced a sharp increase or decrease in the price of this precious metal. However, its rate has never been fixed.
4. Prices for Coins
Coin price fluctuations can be considered in line with gold; It means that the price of the coin fluctuates and changes, but we can consider its changes relative.
5. Car Price
The car market is one of the most unstable markets in terms of price. This instability originates from political and economic problems, issues related to the embargo and import of car parts, as well as the increase in the price of parts.
6. House Price
Real estate is one of the fields in which the broker’s fault is very prominent. On the other hand, in the field of housing, we are facing a decrease in supply; That is, due to the increase in the price of construction materials, it is not possible to build housing on a large scale. For this reason, with the decrease in supply and increase in demand, we are facing housing price fluctuations.
The Impact of Currency Fluctuations on Business
The field of business is affected by currency fluctuations to a great extent. Because the export and import of goods, especially at the international level, can undergo many changes in accordance with these currency changes. In fact, currency and price fluctuations and the export of non-oil products are in direct interaction with each other.
It is interesting to know that no matter how weak we are in relation to the domestic currency, this will improve and increase the export rate. In line with currency changes, some companies active in the field of export with their surplus goods depots try to export when the exchange rate increases.
Up To Sum
Currency and price fluctuations in different areas can cause the market of those areas to face a crisis. In addition, investing in any field requires checking the prices in that market and predicting their price changes. Also, such fluctuations will be very important and influential on the trade system, especially international trade, in the field of export and import. It should be noted that currency fluctuations and devaluation of the domestic currency can provide the basis for increasing exports.