The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.
The foreign exchange market is the made up of 2 components. First the Spot rate. This is the exchange rate at the present time. The spot rate on FX changes every second and is constantly updating....
flexible-exchange-rate system, the equilibrium exchange rate reflects the supply and demand for the currency. Under a fixed-exchange-rate system, a country's central bank intervenes by buying or...
interest rate can be seen as the price of a currency, if it goes up, then the value of investment would rise as well, thus making this currency more desirable comparing to others, leading to an...