Glossary entry

Exchange rate

An exchange rate is the price of one currency expressed in another. For yen and dollars it tells you how many yen one dollar is worth at a given moment, and it changes continually while markets trade. A rate on a converter is a reference point, while the rate a provider gives you includes its own margin or fee. To judge an offer, compare the exact yen you would receive with what the same dollars would buy at the reference rate. See also: mid-market rate, spread, margin, and the guide Mid-Market Rate vs the Rate You Actually Get.