Exchange Rates

Exchange rates determine how much one currency can be exchanged for another. For example, if the exchange rate between the US dollar and the euro is 1 USD to 0.85 EUR, it means 1 dollar can be traded for 0.85 euros. These rates fluctuate based on factors like economic stability, interest rates, and market demand. They impact international trade, travel costs, and investments. A strong currency buys more foreign goods, while a weak currency makes imports more expensive. Understanding exchange rates helps individuals and businesses navigate global financial transactions effectively.