Define the foreign exchange rates.

● The rate at which one currency is exchanged for another currency is called a foreign exchange rate.

● It is the value of one currency in terms of another currency.

● It is determined by the forces of demand and supply in the foreign exchange market.

● For example, the exchange rate of Riyal and rupee is - 1 riyal = 19 Rupees. This is called the foreign exchange rate of Riyal in terms of Rupee.