Exchange rate is a currency rate through which one currency is exchanged against other currency. This is also known as the value of one currency in terms of another currency. Exchange rate is updated every 24th hour by currency exchange experts.These rates are mostly decided on the demand and supply of the currency in a given market.Pegged exchange rate system,floating exchange rate systems and fixed exchange rate systems are three most popular currency exchange rate systems.
Nowadays floating rate is the most common exchange rate regime used all over the world. In this type of exchange rate system,rate is determined on the basis of the demand and supply of that currency in that given currency market.