Exchange Rate

An Exchange Rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 91 Indian Rupee (INR) to the United States dollar (US$) means that INR91 will be exchanged for each US$1 or that US$1 will be exchanged for each INR 91. Exchange rates are determined in the foreign exchange market.