EXCHANGE RATE: The price of one nation's currency in terms of another nation's currency. This is often called the foreign exchange rate in that it is the price determined in the foreign exchange market when people buy and sell foreign exchange. The exchange rate is specified as the amount of one currency that can be traded per unit of another. See also | currency | money | foreign exchange | foreign exchange market | foreign trade | foreign investment | domestic | foreign | import | export | fixed exchange rate | floating exchange rate | managed float | J curve |
