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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one countryâs currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, Â¥) to the United States dollar (US$) means that Â¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each Â¥119.
Forex is the market where all the world's currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $1.9 trillion.orex is the market where all the world's currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $1.9 trillion.