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Foreign exchange rate determine with various factors like

1.GDP- Gross Domestic Product

2.Policy of the country like Monetary & fiscal policy

3.Per capita income

4.IIP- index of industrial Production

5. Infrastructure

6.PEST issues

7. Currency exchange laws of the particular country.

8.Demand flow

9.FDI- foreign direct investment

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Q: How is foreign exchange rate determine?
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Related questions

Importance of foreign exchange rate?

The foreign exchange rate helps determine the value of money. When the exchange rate is high, then the currency is less valuable.


Which foreign exchange system has the highest foreign exchange rate?

The Zimbabwean has the highest foreign exchange rate.


What statement describes the foreign exchange rate?

The foreign exchange rate is also known as the exchange rate. This is defined as the difference between two currencies.


What is the foreign exchange rate in the US?

The US foreign exchange rate varies greatly depending on the country and currency. The current foreign exchange rate for euros is 0.77 euros per USD. The current foreign exchange rate for CAD is 1.02 CAD per USD.


What is REER in exchange rate?

The real effective exchange rate based on real exchange instead of nominal exchange rate in foreign currency exchange.


What determines supply and demand in the foreign-exchange market?

Supply and demand in the foreign-exchange market are determined by changes in many market variables, including relative price levels, real interest rates, productivity, product preferences, and perceptions of economic stability.


Difference between Spot Exchange Rate and Exchange rate?

An exchange rate, which is also called the foreign-foreign exchange rate, is the rate that currency will be exchanged for another currency and may have a forward contract. The spot exchange rate is the current exchange rate today with immediate delivery and it is also called benchmark rates and outright rates.


What is Two way exchange quotes?

The buying rate & selling rate in foreign exchange market.


What is the difference between a floating and a pegged exchange rate?

pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange


What is forward rate in foreign exchange market?

Transaction in future date by forward contract(future delivery) to purchase/sell foreign exchange at prevailing rate.


How do you determine foreign exchange?

Foreign Exchange rates vary on a daily basis. You can check them in newspapers, on financial websites, or in a bank.


What is the current foreign exchange rate for currencies?

You can update the foreign exchange rate of currencies in the Internet or on forex brokers, such as alpari.com/#informer=quotes or any other ones.