An exchange rate represents the value of one currency in terms of another and determines the rate at which they can be traded. It reflects the relative strength of currencies and influences international trade, investment, and financial transactions.
Exchange rates fluctuate based on economic factors, geopolitical events, and market demand. Governments and central banks may also intervene to stabilize or adjust exchange rates.
Understanding exchange rates is crucial for businesses, investors, and policymakers, as they impact the cost of goods and services in global markets.
