In some areas of Europe and in the retail market in the United Kingdom, EUR and GBP are reversed so that GBP is quoted as the fixed currency to the euro. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. The spot exchange rate refers to the current exchange rate. Japanese yen (JPY, ?) to the United States dollar (US$) means that ? US$1 or that US$1 will be exchanged for each ? In this case it is said that the price of a dollar in relation to yen is ?Įxchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers, and where currency trading is continuous: 2. For example, an interbank exchange rate of 1. Money Management | It is also regarded as the value of one country’s currency in relation to another currency.
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