It’s simple! When more people want a currency, its price goes up. When fewer people want it, the price goes down. Things like news, interest rates, and politics can make people buy or sell a currency. For example, if a country’s economy is doing well, more people buy its currency, and the price rises. If there’s bad news, people sell it, and the price drops. It’s just like anything else - when demand is high, prices go up, and when demand is low, prices fall.
Could a viral social media trend make a currency’s value spike, kind of like what happened with meme stocks?