An exchange rate is simply a score for one currency against another and represents the number of units of one currency that need to be exchanged for a single unit of another currency. The exchange rate is thus the price of one currency against another and, given the number of world currencies today, within the US alone there are literally dozens of exchange rates. Now that seems simple enough but, unfortunately, it is not quite that easy.Quite apart from these simple exchange rates, which are sometimes referred to as ‘spot’ rates, there are also a whole range of ‘trade weighted’ or ‘effective’ rates which show the movement of one currency against an average of several other currencies. There are also exchange rates which are used in markets such as the forwards markets in which delivery dates are set at some point in the future, rather than at the time of the initial transaction. In other words, there is no such thing as an exchange rate, but are in fact a series of different exchange rates depending upon the nature of the transaction.The foreign exchange market is driven largely by supply and demand and the exchange rate between any two currencies at any moment in time is influenced substantially by the interaction of the various players in the market. In a few cases currencies are still fixed, or the exchange rate is set by the monetary authorities, and when this is the case the country’s central bank will normally intervene if required and either buy or sell the currency to keep its exchange rate within a narrow and defined band. In the vast majority of cases however, and certainly in the case of the US, currencies are allowed to float and central banks do not normally, and certainly not routinely, intervene to support their currency. Accordingly, the exchange rate for a particular currency against other currencies is determined by players, large and small, who are buying and selling the currency at any particular moment in time.The mix of participants in the market is important and will affect different currencies to varying degrees. Some buyers and sellers deal in the market purely in support of international trade and are operating in the ‘goods’ market buying and selling currency to pay for merchandise being traded across national borders. Other dealers are buying and selling currencies in support of ‘portfolio investment’ and are trading in bonds, stocks and other financial instruments across national borders. Yet another group of currency traders are operating in the ‘money’ market and are trading short term debt across international borders.As if this were not complicated enough, this mix of traders whether they are paying for imports, investing, speculating, hedging, arbitraging or simply seeking to influence exchange rates are also focusing their attention of a variety of different timeframes in their trading which will range from a matter of minutes to several years.Against this background it is no wonder than predicting exchange rates is a complex business. Doing so however is vitally important since exchange rates influence the behavior of all of the participants in the market and, in today’s open market, also influence interest rates, consumer prices, economic growth, investment decision and so much else. It is for this reason that the forex market plays such a critical role in determining exchange rates.

Submitted by: Stewart Wrighter

Building a fence around your property means that you have a lot of decisions to make. You have to figure out if you are going to do it all on your own or if you are going to hire a fencing company to do it for you. Then you have to determine just exactly where the fence will go. Sometimes this includes getting permits, etc. so that you do not break any laws or go against the homeowners association. Many of those decisions are based upon your knowledge or the things that are required in your area. However, deciding what material you will use may be the hardest decision when you are installing fences.

The most popular type of type of material for building a fence is wood. People like to use this because they generally believe that it looks the best. Another big benefit of using wood is that it provides you with the most privacy. This of course assumes that you put the slats very close together. You might also make the choice to put the slats farther apart so that you can see through the fence. Wood also gives you the flexibility of various colors depending on the type of wood you pick and it is one of the more inexpensive options. However, as good as it looks; wood also has its drawbacks because it requires more maintenance than almost any other kind of fence. If you want the wood to always look great, it will require regular staining and sealing in order to protect it from the weather. You will also likely have to replace a few boards on occasion.

A composite fence is another option that you have when you are putting up a new barrier in your yard. This is a mixture of a resin base with recycled wood fibers. This will cost a little bit more than regular wood boards and is not as flexible as the real thing, but it does not need the same kind of maintenance.

Vinyl fencing is another option that you have. These kinds of fences usually come in a kit that is ready to install with pre-sized panels. It is easy to cut down the size and is very weather resistant. This makes it a very popular choice these days of people who are installing their own fencing. If you are installing a fence that just needs to fence in a specific area, aluminum fencing is a great option. This kind of fence would not give you any kind of privacy at all but it is relatively maintenance free.

If you want a fence that really looks great and will last for the longest time possible, you should consider hiring a contractor to install a stone, brick or concrete fence for you. Although these types of fences are the most expensive and the most difficult to put in, they also do not require any maintenance and they look fantastic if they are done right. If you are looking for a new fence, you should look at the privacy you want, the cost and how much maintenance you are willing to do.

About the Author: Stewart Wrighter has recently received an estimate from a

CT fencing

company. He checked out the selection of

CT fences

available for his backyard.

Source:

isnare.com

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