Finance, Forex and Investments

What is the main consideration in affecting the exchange rate?

I sell things to Japan from the UK, and get paid in yen in Japan I then have the money sent to me which gets changed into sterling. The exchange rate was 252 yen to the pound, it`s now 206, which means I get more money, as I pay less yen for each of my pounds. What one thing would make the exchange rate go even lower to 180 or 200 as it was a few years ago?

Public Comments

1. ？？用　毛ｔぇｓもねｙ、のｔもれ：－）
2. The main consideration is how other currencies or Central Banks view the pound. If their confidence in this countries affairs go down, then they downgrade the pound.
3. Inflation weakens the currency, also if we reduce our interest rates, sterling will probably weaken. The strength of the economy is also important, including the state of Government finances and balance of trade. Crucially, however, the currency assessments made by traders are relative to what's happening to the currencies that they are being measured against. No currency is assessed independently.