why does value of US currency fluctuates than being constant,what are the factors affecting this?

Question

anonymous · Answer

Monetary Policy and Fiscal Policy are large factors in determining the value of the dollar.

gw2011 · Answer

The supply and demand for US currency will affect the value.  There are different factors that affect this--such as ngormanO has pointed out.  Also, the belief of others regarding what they think about the strength of the US dollar.  The demand for US products and services both domestically and foreign will affect the value.

anonymous · Answer

It is both real and perceived supply and demand for that particular currency. For India story you may read this: http://www.thinkplaninvest.com/2011/09/what-is-the-reason-behind-rupee-value-depreciation/