Foreign Exchange Rates Foreign exchange rate refers to the price at which one currency can be exchanged for another currency. It represents the value of one currency relative to another. Foreign exchange rates are quoted as currency pairs, where one currency is the base currency, and the other currency is the quote currency. The exchange rate indicates how much of the quote currency is needed to buy one unit of the base currency. For example, if the exchange rate between the US dollar (USD) and the euro (EUR) is 1.20, it means that one US dollar is equivalent to 1.20 euros. In this case, the USD is the base currency, and the EUR is the quote currency. Foreign exchange rates are dynamic and can fluctuate due to various factors such as supply and demand dynamics, interest rates, inflation rates, economic indicators, geopolitical events, and market sentiment. These rates play a crucial role in international trade, investment, tourism, and financial transactions involving diff...
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