economics

exchange rate

The value of one currency for the purpose of conversion to another.

Example

"The exchange rate between the dollar and euro affected the cost of her European vacation."

💡 Memory Tip

You EXCHANGE one currency for another at a RATE. The rate tells you how much you get.

Etymology

Exchange (to trade) + rate (a fixed price) — the fixed price at which currencies trade.

Common Misspellings

exchange reteexcange rateexchange ratexchnage rate

Related Terms

forexappreciationdepreciation

See Also

currency

Want to understand money better? Get money tips and new terms in your inbox.