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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.

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Exchange Rates and Economic IndicatorsCurrency exchange rates tend to be affected by macroeconomic variables, such as the major economic indicators released by governments at fixed intervals. For instance, the Gross Domestic Product (GDP) ... Read more