Share your insights or perspective on the financial matter presented in the input.

How do currency markets work? What factors are behind why currencies go up or down?
The fiat currency is the basis for currency markets - that is, currency that is not made of precious metals.   The factors that influence what the value of a fiat currency are the state of the country's economy, what the gov't says the value should be, their fiscal policies, as well as what the currency is trading at.   And what the currency is trading at is a product of these factors as well as the typical factors which would affect any stock trading.  eHow has a great outline, here, which describes them.