If the dollar becomes too weak this will cause inflation, and if the dollar becomes too strong it will cause exporters to compete in other nations. Investors will increase the value of currency by buying more and more currency. If in investors are interested in lowering the value of currency they will sell currency to traders around the world. The money that is being invested has been accumulated from previous investments. Savings from profits that have been made by investors or wages that have been accumulated in the past generates investment capital.
Currency trading can be very risky.
Currency is controlled by interest rates and is susceptible to the fluctuation of interest rates. If interest rates rise then currency prices drop, and if interest rated lower the bond prices will rise. The finance market has become so large because it grew faster than any other market. The global market has grown in the past twenty-five years because governments have removed control on financial capital. Finance investments have dominated the markets so greatly that by 1992 assets from the advanced nations of the Organization for Economic Cooperation and Development totaled thirty-five trillion dollars, which was double the economic output in those nations.