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What is Exchange Rate?
The term “Exchange Rate”, also referred to as Forex rate, FX rate or simply Foreign Exchange Rate in finance, simply indicates the rate at which a currency can be exchanged for some other one. It can also be considered to be the worth of the currency of a country in terms of some other currency.
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Why is it important?
Exchange Rates are decided in the Forex market and it is open to a wide range of buyers and sellers who would like to indulge in constant trading. For any currency, there are differences in the forms of exchange and the buying and selling rates that are quoted between Forex dealers and these differences can be quite substantial.
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