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Spot exchange rates are determined by the forces of supply and demand in the foreign exchange market. These rates reflect the current market value of one currency in terms of another currency, and they can fluctuate based on various factors such as economic indicators, geopolitical events, and market speculation.

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5mo ago

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Related Questions

Who or what determines the exchange rates in the foreign currency market?

Currently exchange rates are determined by laws of supply and demand.


Flexible exchange rates are determined by?

By the demand and supply of currencies in the global exchange market.


What factors determine how exchange rates are based on?

Exchange rates are determined by factors such as interest rates, inflation, political stability, and economic performance of a country. Supply and demand for a currency also play a significant role in determining exchange rates.


Explain using economic models how an exchange rate is determined under a floating exchange rate regime What are the factors that can cause an appreciation in exchange rates Malaysia has recently cha?

Exchange rates are determined through supply and demand. An increase in interest rates can appreciate an exchange rate as investors convert their money into that currency to take advantage of a higher return on their money.


Difference between Spot Exchange Rate and Exchange rate?

An exchange rate, which is also called the foreign-foreign exchange rate, is the rate that currency will be exchanged for another currency and may have a forward contract. The spot exchange rate is the current exchange rate today with immediate delivery and it is also called benchmark rates and outright rates.


What is the significance and difference in foreign currency exchange rates?

The differences in foreign currency exchange rates is also called a spread. The size of the spread determined by the liquidity of the pair, the amount of buyers and sellers.


How frequently do exchange rates update?

The rates change constantly. Certain organizations and businesses specify the exchange rate at a certain time to be effective for their transactions. They may say the spot price at the New York exchange at noon will be the rate for the day.


How exchange rates are set?

It's determined by the global currency exchange market, which takes into account factors like GDP, unemployment, inflation, and the like.


What are exchange rates between trading nations increasingly decided by?

Without operational criteria for managing currency relationships, exchange rates have been increasingly determined by volatile international capital movements rather than by trade relationships.


If the supply and demand for currency determines the exchange rates this is called?

floating


How are currency exchange rates are calculated?

Currencies exchange rate are not calculated but determined by the market supply and demand. If the demand is higher than the supply the price will go up and vice versa.


What are foreign exchange rates?

Foreign exchange rates are currency exchange value of other countries.