The article explores how exchange rates are influenced by factors like balance of trade and balance of payment. It looks at the impact of various factors on exchange rates, such as exports, imports, capital goods, consumption levels, oil prices, and political uncertainty. The study found a significant relationship between exchange rates, balance of trade, and balance of payment. This means that the balance of trade and balance of payment strongly affect exchange rates in a country. Additionally, changes in exchange rates can also impact manufacturing growth rates.