Business, Legal & Accounting Glossary
Rate at which one currency may be converted into another. also called rate of exchange or exchange rate or currency exchange rate.
A foreign exchange rate is the price of one currency in terms of another. For example, suppose the foreign exchange rate for the Japanese yen vis-à-vis the U.S. dollar is ¥100 = $1. If the foreign exchange rate changes to, say, ¥110 = $1, the yen is now weaker and the dollar stronger, since it now costs 10 yen more to buy a single dollar. But if the foreign exchange rate changed to ¥90 = $1, the yen is now worth more, since it only costs 90 yen to buy a dollar. The foreign exchange rate for the yen could also strengthen against the dollar while its foreign exchange rate against other currencies weakens. A currency’s foreign exchange rate is determined by many factors, including the macroeconomic, monetary, and trade policies of its own country and those of other nations.
The foreign exchange rate is key for investors when buying stocks quoted in currencies other than their own because the foreign exchange rate will determine the amount they receive in their own currency upon sale.
The foreign exchange rate was very strange to me and I needed some help figuring it all out for myself.
If you will be doing business in other countries you need to find a way to get the best foreign exchange rate that you can.
The foreign exchange rate currently realized by United States travelers abroad has made a variety of foreign destinations significantly more affordable.
economic exposure
strong dollar policy
equilibrium exchange rate
unsterilized foreign exchange intervention
export/import prices
Quotation American Terms
noon rate
direct quote
equity linked Eurobond
multiple exchange rates
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This glossary post was last updated: 2nd November, 2021 | 0 Views.