What is Foreign Currency Exchange Rate?
The prevailing exchange rate of a foreign currency is one of the most sought-after financial figures by exporters, importers, investors, tourists or even ordinary citizens who have several dollars towed away somewhere in the privacy of their homes. Even the ordinary citizens outside the United States hold on to their precious dollars hoping for an increase in the foreign currency exchange rate later on Foreign currency exchange rate refers to the value of a certain currency based or compared to the rate of another currency. The value of the dollar for example is often used as the standard peg of most currencies in the third world. A foreign currency exchange is said to be increasing its value if it is gaining strength against the dollar even in terms of centavos. The value or rate of foreign exchange is not always the same as it is prone to constant fluctuation depending on how the world economy is moving. Most people have their foreign currencies changed through banking institutions.
