Rate definition

Rate

A rate of exchange is the value of one currency against another, and in trading exchanges, the rate can be free-floating or fixed.

When a currency is fixed, its government has pegged its national currency against another, generally by giving a range. In a free-floating exchange, all currencies fluctuate with market changes.

What affects forex rates?

Forex exchange rates are affected by things like interest rates, economic growth, confidence in an economy, terms of trade, inflation, public debt, and current account deficits. The foreign exchange market is a global market and offers both spot and derivative trading.

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