<p><strong>Preamble:</strong></p>

<p>Today the rate of EUR is <strong><em>82.09</em></strong> in BDT ( Bangladeshi Currency) and two hours later it's <strong><em>82.50</em></strong> ( I hope, it's increasing). But why does this fluctuation just keeps happening? Looks like the rate changes every seconds..</p>

<p><strong>Question:</strong></p>

<ol>
<li>What's the equation to calcualte currency fluctuation?</li>
<li>How can someone forecast the fluctuation and direction of fluctuation (upward or downward)</li>
</ol>

<p>Please consider to have mercy before you lash me out for asking silly qoestion. I'm a newbie :)</p>

CC BY-SA 3.0
2016-12-30T10:27:20.147Z
1. What do you mean by this?
2. If anyone could do that with 100% certainty they would be a trillionares.
Giskard
CC BY-SA 3.0
2016-12-30T11:24:20.923Z
What percentage of certainty is acheiveable then? And leaving that too you could answer the first one too if you please :)
edam
CC BY-SA 3.0
2016-12-30T13:08:21.253Z
@denesp         I meant how **1 EUR = x*y*z = 82.50 BDT** ? What are the XYZ variables in the equation?
edam
CC BY-SA 3.0
2016-12-30T15:09:22.893Z
The nominal exchange rate, which is what you see, fluctuates around the real exchange rate, which is driven by differences in the prices of goods across borders.
Hessian
<mathematical-economics><currency><international-economics><currency-exchange><foreign-exchange>
What's the equation of currency fluctuation?
edam
# What's the equation of currency fluctuation?

(Asked by: username_0 on 2016-12-30)

**Preamble:**

Today the rate of EUR is ***82.09*** in BDT ( Bangladeshi Currency) and two hours later it's ***82.50*** ( I hope, it's increasing). But why does this fluctuation just keeps happening? Looks like the rate changes every seconds..

**Question:**

1. What's the equation to calcualte currency fluctuation?
2. How can someone forecast the fluctuation and direction of fluctuation (upward or downward)

Please consider to have mercy before you lash me out for asking silly qoestion. I'm a newbie :)

**Tags:** mathematical-economics, currency, international-economics, currency-exchange, foreign-exchange
> **Comments:**
> **username_1**: 1. What do you mean by this? 2. If anyone could do that with 100% certainty they would be a trillionares.  
> **username_0**: What percentage of certainty is acheiveable then? And leaving that too you could answer the first one too if you please :)  
> **username_0**: @denesp         I meant how **1 EUR = x*y*z = 82.50 BDT** ? What are the XYZ variables in the equation?  
> **username_2**: The nominal exchange rate, which is what you see, fluctuates around the real exchange rate, which is driven by differences in the prices of goods across borders.  

---

## 0 answers

