exchange rate

Definition

Rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another (such as for the purposes of travel to another country), or for engaging in speculation or trading in the foreign exchange market. There are a wide variety of factors which influence the exchange rate, such as interest rates, inflation, and the state of politics and the economy in each country.also called rate of exchange or foreign exchange rate or currency exchange rate.

Use exchange rate in a sentence

I wanted to know the exchange rate for the money, so I could get some when I went to the store.

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When doing business with the European companies, the exchange rate always influenced the final decision of the American financial company.

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While shopping at Ikea in Canada they were able to take advantage of the exchange rate. They were able to buy so much more at the stores because of the additional money.

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ceiling purchasing power parity