Exchange rate

The price of one country's currency expressed in another country's currency. The New York Times Financial Glossary

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exchange rate exˈchange rate noun [countable]
FINANCE the price at which one currency can be bought with another:

• If the yen-dollar exchange rate remains at its current level, U.S. exporters could lose $5 billion to $10 billion in business annually.

ˈcross rate FINANCE
the rate of exchange between two currencies, calculated by comparing them to another currency:

• In the foreign exchange market all currencies are quoted against the dollar, so market operators can quickly work out cross rates between various currencies.

equiˌlibrium exˈchange rate FINANCE
an exchange rate that would take account of differences in inflation interest rate S, and other aspects of the economic situation:

• When the head of currency research at JP Morgan calculated an equilibrium exchange rate of DM2.95 to the pound, it was based on an assumption that the UK would join the Euro in 2002.

ˌfixed exˈchange rate FINANCE
an exchange rate that is not allowed to change in relation to others, for example under the Bretton Woods Agreement:

• Given a fixed exchange rate and a UK inflation rate higher than that in the rest of the world, UK exports will become less competitive in world markets while imports will become more attractive to UK buyers.

ˌfloating exˈchange rate also ˌfree exˈchange rate FINANCE
an exchange rate when the value of a currency is allowed to change in relation to others
ˌforward exˈchange rate FINANCE
a fixed price given for buying a currency today to be delivered in the future, for example in three months' time, used in international trade to avoid the extra costs that could occur if the exchange rate changes
interˈvention rate FINANCE
the rate of exchange, either high or low, at which a country's national bank must buy or sell its own currency in order to return it to the same value that it had before:

• The Bank of France pushed up its intervention rate by 0.75% to 9.5%.

ofˌficial exˈchange rate FINANCE
an exchange rate set by the government:

• The official exchange rate is two pesos to the dollar; in Havana, the black market rate for pesos is 60 to the dollar.

ˈspot ( exˌchange) rate FINANCE
the price of a currency to be delivered now, rather than in the future:

• the percentage difference between the forward exchange rate and the spot exchange rate

ˌtrade-ˌweighted exˈchange rate FINANCE
an exchange rate calculated in relation to different countries' currencies to take account of the amount of trade that is done with each country
ˌunofficial exˈchange rate FINANCE
an exchange rate that is not set by a government but is one that people really use, for example on the black market:

• His official monthly salary of 500 rubles is now worth only about $18.60 at the widely used unofficial exchange rate.

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exchange rate UK US noun [C] (also rate of exchange)
ECONOMICS, FINANCE the rate at which the currency of one country can be changed for the currency of another country: a fall/rise in the exchange rate »

The fall in the exchange rate triggered a rise in inflation.

a competitive/favourable/good exchange rate »

Maintaining low inflation is essential to secure a stable and competitive exchange rate.

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a high/low exchange rate

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exchange rate fluctuations/movements

See also EQUILIBRIUM EXCHANGE RATE(Cf. equilibrium exchange rate), FIXED EXCHANGE RATE(Cf. ↑fixed exchange rate), FLOATING EXCHANGE RATE(Cf. ↑floating exchange rate), FORWARD EXCHANGE RATE(Cf. ↑forward exchange rate), OFFICIAL EXCHANGE RATE(Cf. ↑official exchange rate), REAL EXCHANGE RATE(Cf. ↑real exchange rate), SPOT EXCHANGE RATE(Cf. ↑spot exchange rate), TRADE-WEIGHTED EXCHANGE RATE(Cf. ↑trade-weighted exchange rate), UNOFFICIAL EXCHANGE RATE(Cf. ↑unofficial exchange rate)

Financial and business terms. 2012.

Look at other dictionaries:

  • exchange rate — ♦♦♦ exchange rates N COUNT The exchange rate of a country s unit of currency is the amount of another country s currency that you get in exchange for it …   English dictionary

  • exchange rate — n. the rate at which the currency of one country or region can be exchanged for that of another country or region …   English World dictionary

  • exchange rate — exchange′ rate n. ban bus the ratio at which a unit of the currency of one country can be exchanged for that of another country • Etymology: 1895–1900 …   From formal English to slang

  • exchange rate — ► NOUN ▪ the value of one currency for the purpose of conversion to another …   English terms dictionary

  • Exchange rate — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… …   Wikipedia

  • exchange rate — The price of one country s currency expressed in another country s currency. Bloomberg Financial Dictionary * * * exchange rate exˈchange rate noun [countable] FINANCE the price at which one currency can be bought with another: • If the yen… …   Financial and business terms

  • exchange rate — the ratio at which a unit of the currency of one country can be exchanged for that of another country. Also called rate of exchange. [1895 1900] * * * Price of one country s money in relation to another s. Exchange rates may be fixed or flexible …   Universalium

  • exchange rate — n. 1) to set an exchange rate 2) to apply an exchange rate * * * to apply an exchange rate to set an exchange rate …   Combinatory dictionary

  • exchange rate — /ɪks tʃeɪndʒ reɪt/ noun 1. a rate at which one currency is exchanged for another. Also called rate of exchange 2. a figure that expresses how much a unit of one country’s currency is worth in terms of the currency of another country ▪▪▪ ‘…can… …   Dictionary of banking and finance

  • Exchange Rate — The price of one country s currency expressed in another country s currency. In other words, the rate at which one currency can be exchanged for another. For example, the higher the exchange rate for one euro in terms of one yen, the lower the… …   Investment dictionary

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