The tool by which we can measure the value of one currency to another is known as the foreign exchange rates. For example the USD and the Indian rupees have a difference value of 45 approximately. So it means that 1$=Rs45. In other words one dollar is 45times more expensive than 1 rupee.
The other term of foreign exchange rates is forex or currency rates. The rate of the currency is applicable on the currency pairs of two countries. The currency listed on the left of the table is known as the reference or the base currency while on the other side it is known as the quote currency.
Currency rates are always found in the form of quotations. It shows the total number of quoted currencies which can be bought together by using one unit of reference currency.
The base currency and the quoted currency are determined on the value of the currency. For example if the currency value of Yen (Japanese currency) is expensive than the USD (US currency) then quiet obviously the former would be considered as the base currency while the later would be the quoted currency.
The Reserve Bank of India & the Foreign Exchange Rates
Reserve Bank of India is the financial body which manages the Foreign exchange rates in India with the help of Foreign Exchange Management Act 1999. The RBI gives the FOREX rates for different international currencies and the important factor is that it changes on day to day basis.
Sources where you get to know about the foreign exchange rates
As discussed earlier foreign exchange rates almost changes from day to day so we need to keep an eye on the news paper daily, on internet and even on the television. This information from these sources are quiet important as the quantity of forex transaction depends on it.
Hey man, what are you trying
Hey man, what are you trying to pose, we understand what is dollar and what is rupees where is the damn Currency Converter
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