Several factors influence currency exchange rates in the forex market. First, interest rates set by central banks can affect the attractiveness of a currency, as higher rates offer better returns on investments. Second, economic indicators such as GDP growth, unemployment rates, and inflation provide insights into a country's economic health, impacting currency value. Third, political stability and economic performance can lead to increased investor confidence or uncertainty, affecting demand for a currency.

Currency exchange rates in the forex market are influenced by several factors. Key drivers include interest rates, as higher rates attract foreign investors, and inflation, since lower inflation strengthens a currency. A country’s economic performance and political stability also play major roles, with strong economies and stable governments attracting more investment. Additionally, supply and demand, trade balances, and market sentiment or major news events can cause currencies to fluctuate quickly. All these factors together determine how strong or weak a currency is compared to others.