Exchange Rate: The fundamental driver is the supply and demand for both USD and KHR. Higher demand for USD pushes its value up, increasing the USDKHR rate. Interest Rate Differential: The difference in interest rates between the US and Cambodia can influence capital flows. Higher US interest rates may attract foreign investment, boosting USD demand and increasing the rate. Inflation Rates: Relative inflation rates also affect exchange rates. Higher inflation in Cambodia erodes KHR purchasing power, leading to KHR depreciation and a higher USDKHR rate. Economic Growth: Stronger US economic growth typically strengthens the USD, raising the USDKHR rate. Conversely, robust Cambodian growth can strengthen the KHR, lowering the rate. Political Stability: Political instability in Cambodia can decrease investor confidence, reducing demand for KHR and increasing USDKHR. Stability favors a stronger KHR.