Definition of exchange rate
: the ratio at which the principal unit of two currencies may be traded
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Recent Examples of exchange rate from the Web
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Then in 2015, the exchange rate turned in favor of the U.S. dollar.
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The decline mirrors that of the peso, which fell from an average exchange rate of 12.85 pesos to every dollar during pre-Easter week in 2012 to 18.64 in 2017.
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Using a conservative exchange rate of RMB 6.30 to the U.S. dollar, that equates to $3.17 billion.
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For travelers, don't stress about a language barrier and currency exchange rates.
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The site Pinto uses to instantly exchange bitcoin for bolivars is called LocalBitcoins, where buyers and sellers meet and negotiate their own exchange rate.
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The report said virtual money issued by a country’s central bank could, if widely used in crossborder transations, lead to disruptive international capital flows and exchange rate fluctuations.
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Around 40,000 rubles a month [about $700 at the current exchange rate].
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Hsu said after the 12-hour timeframe, a new price has to be calculated based on the current exchange rate.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'exchange rate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of exchange rate
1855
Financial Definition of EXCHANGE RATE
exchange rate
What It Is
An exchange rate between two countries' currencies indicates the value of one currency relative to the other.
How It Works
On June 16, 2010, the exchange rate between the dollar and the euro was 1.23 $/€. This means that to obtain one euro, you would need 1.23 dollars. Conversely, if you were about to take a vacation to Europe, you could take $1,000 to the bank and receive €813.01.
Exchange rates can be fixed or floating. If a country fixes its currency to that of another country, the exchange rate between those two currencies will not change. If a country has a floating exchange rate, the rate between its currency and any other currency will adjust to market conditions.
Why It Matters
The exchange rate between two currencies plays a major role in international trade and investment. For instance, if the dollar appreciates, or gains value, relative to the euro, Americans traveling in Europe will have greater purchasing power, but it will be more difficult for the U.S. businesses to export goods.
Changes in the exchange rate are subject to a wide range of factors, such as interest rates, price levels and expected future market conditions.
Source: Investing Answers
EXCHANGE RATE Defined for English Language Learners
exchange rate
Definition of exchange rate for English Language Learners
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: a number that is used to calculate the difference in value between money from one country and money from another country
Learn More about exchange rate
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See words that rhyme with exchange rate Spanish Central: Translation of exchange rate Britannica English: Translation of exchange rate for Arabic speakers Britannica.com: Encyclopedia article about exchange rate
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