Exchange Rate
The price of one currency expressed in terms of another.
Full Definition
The exchange rate shows how much of one currency is needed to buy another. If EUR/USD is 1.1000, one euro costs 1.10 US dollars. Exchange rates fluctuate based on supply and demand, influenced by economic indicators, interest rates, political events, and market sentiment. Both floating (market-determined) and fixed (government-pegged) exchange rate systems exist.