relationship between currencies

Forex exchange rate show the relationship between two currencies

Forex exchange rate is the value of two currencies relative to each other. This relationship is usually expressed as the amount of one currency required to buy a unit of another currency.

For instance, if on a particular day one US dollar can buy 110 Japanese yens then the foreign exchange rate for the two currencies would be 1:110. This equation is also known as pairing. The pairing can be reversed to indicate how many US dollars a single unit of Japanese yen can buy.

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