The goal is to keep the dollar from becoming too weak or too strong. Investors change the value of currency in relations to other countries, by either buying or selling currency from money traders around the world. In hopes of greater returns millions of American investors take their savings from government insured banks, and are buying mutual funds. These investors are making a great deal of money because of the global market in capital. The exchange rate is the price of one currency in terms of either gold or another currency.
Finance capital is the money that has been invested in bonds, loans or stock shares.
The exchange of money enables investors to mass great wealth, and it is mass wealth that is the core of the financial market and the capitalist system. Fixed exchange rates refer to values established by governments, while floating exchange rates are those that fluctuate freely as the foreign exchange market fluctuates. 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.