How often do exchange rates fluctuate in the foreign exchange market?

Exchange rates in the foreign exchange market fluctuate continuously throughout the trading day. This is primarily due to the fact that the forex market operates 24 hours a day, five days a week, allowing for constant buying and selling of currencies. As traders react to changes in economic indicators, geopolitical events, and market sentiment, the supply and demand for currencies change rapidly, leading to ongoing updates in exchange rates.

Factors influencing these fluctuations can include news releases, economic data, central bank policies, and other market-moving events that occur at any time, contributing to the dynamic nature of currency values. This constant activity signifies that the forex market is among the most liquid and fastest-paced financial markets in existence, reinforcing the idea that exchange rates are not static and can change at any moment based on real-time information and trading activity.