What are Dollar Terms?
When you want to take a trip from one country to another or dabble in the currency exchange market, it would be a good idea to check foreign currency exchange rates. In the U.S., these exchange rates will be presented in dollar terms. Thus, a unit of foreign currency will be described as how much of the unit will equal one U.S. dollar. The value of the dollar to units of foreign exchange, of course, varies widely and depends on the worth of the units to banks in the U.S. By nature, dollar terms are the reciprocal of European terms, whereby the value of the dollar is expressed in Euro-dollars or, simply Euros. As an example of the use of dollar terms, in January of the year 2000, the dollar terms of Euros to U.S. dollars (EURUSD) was 0.9794, thus one Euro was worth just over one dollar. Obviously, the reciprocal of these dollar terms, European terms, would have been 1.0210, where one dollar was worth just under one Euro in January of 2000. The exchange rate is the relative value or purc
