Social Sciences, asked by rinogeorgeal9060, 1 year ago

How does foreign exchange rates are determined?

Answers

Answered by Akhileshsah
1
If a currency is free-floating, itsexchange rate is allowed to vary against that of other currenciesand is determined by the market forces of supply and demand.Exchange rates for suchcurrencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.

hope this will help you
Answered by akshita06092005
2

Answer:

Explanation:

The exchange rate of any currency is the number of units of that currency which is exchanged for 1 unit of the other currency. => One must pay Rs 63 to get 1 $ in return. This exchange rate is determined by the market forces of demand and supply

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