# Exchange Rate

*Macro & Economy — Finicade finance glossary*

The price of one currency in terms of another — how many dollars a euro buys today. It moves with interest rates, trade and confidence, and quietly decides how expensive imports, exports and foreign holidays are.

**Also known as:** fx rate, foreign exchange, nominal exchange rate, real exchange rate, exchange rates review

**Related terms:** [Inflation](https://finicade.com/glossary/inflation), [Interest Rate](https://finicade.com/glossary/interest-rate), [Supply and Demand](https://finicade.com/glossary/supply-and-demand)

**Taught in:** Macro & Markets — Openness & Interest Parity

Source: https://finicade.com/glossary/exchange-rate