Definition Of

Measuring Exchange Rate

An exchange rate measures the value of one currency in units of another currency. As economic conditions change, exchange rates can change substantially. A decline in a currency’s value is often referred to as depreciation. When the British pound depreciates against the U.S. dollar, this means that the U.S dollar is strengthening relative to the pound. The increase in a currency value is often referred to as appreciation.

Share it:  Cite

More from this Section

  • Active account
    Active account refers to a brokerage account in which many transactions occur. Brokerage firms may levy a fee if an account generates
  • Currency futures contract
    Currency futures contract is the agreement between a buyer and a seller of foreign currencies that promises delivery of a stipulated currency at a specified price on a specific date in the future.
  • Put option
    A Put option gives the Option holder the right to sell the asset/shares at a fixed exercise price to another person or firm within a specified period of time.
  • Operating Lease
    In generally, for a short-term and often voidable at the option of the lessee and lessor by a notice is called operating lease. In fact , Operating lease also is called "service lease" or "maintenance lease".
  • Fixed-rate mortgages (FRMs)
    Fixed-rate mortgages (FRMs) is the loans against real property whose rate of interest does not change during the life of the loan.
  • Speculative risk
    Speculative risk is, when there is probability of profit or loss,but results in a loss.
  • OCDEX Rules
    OCDEX Rules is ICC Rules for Documentary Credit Dispute Resolution Expertise. Rules for disputes related to documentary credits.