Solved

exchange rate - how often does it change

Posted on 2012-03-28
6
136 Views
Last Modified: 2012-04-03
does the exchange rate change once per day or more often..
0
Comment
Question by:25112
  • 2
  • 2
  • 2
6 Comments
 
LVL 25

Assisted Solution

by:TempDBA
TempDBA earned 333 total points
ID: 37780251
Each country, through varying mechanisms, manages the value of its currency. As part of this function, it determines the exchange rate regime that will apply to its currency. For example, the currency may be free-floating, pegged or fixed, or a hybrid. A floating exchange rate, where the market dictates movements in the exchange rate; a pegged float, where a central bank keeps the rate from deviating too far from a target band or value; and a fixed exchange rate, which ties the currency to another currency, mostly more widespread currencies such as the U.S. dollar or the euro or a basket of currencies.
                               A market based exchange rate will change whenever the values of either of the two component currencies change. A currency will tend to become more valuable whenever demand for it is greater than the available supply. It will become less valuable whenever demand is less than available supply (this does not mean people no longer want money, it just means they prefer holding their wealth in some other form, possibly another currency).

Ref:- http://en.wikipedia.org/wiki/Exchange_rate
0
 
LVL 5

Author Comment

by:25112
ID: 37781729
so let's say USD to Canadian exchange rate
it may be 1.01 at 10am 1.04 at 11am and 0.99 at noon?
0
 
LVL 25

Assisted Solution

by:TempDBA
TempDBA earned 333 total points
ID: 37782699
Yup if there is no bilateral agreement between both the countries to fix the exchange rate between so many days, etc. If it is floating, then yes.
0
Maximize Your Threat Intelligence Reporting

Reporting is one of the most important and least talked about aspects of a world-class threat intelligence program. Here’s how to do it right.

 
LVL 25

Accepted Solution

by:
nickg5 earned 167 total points
ID: 37783907
When I travel to Asia and I am standing in line at a bank to exchange my U.S. dollars for the local currency, there is a board or a display that shows the exchange rate from, for example, dollars to Filipino pesos. If I am in line for 30 minutes they rate does not change on the digital display, so my experiences is that it does not change every minute, hour, or day.
Now, if there is a crisis of some kind and one currency or the other is moving quickly, then yes, a change is warranted.

If you always have a laptop with you, there are universal currency exchange converters, just use Google.
0
 
LVL 5

Author Comment

by:25112
ID: 37801964
thanks
0
 
LVL 25

Expert Comment

by:nickg5
ID: 37801981
Thank you.

May you always get the best exchange rate when it is time for you to exchange your monies (ha ha)
0

Featured Post

What Security Threats Are You Missing?

Enhance your security with threat intelligence from the web. Get trending threat insights on hackers, exploits, and suspicious IP addresses delivered to your inbox with our free Cyber Daily.

Join & Write a Comment

Suggested Solutions

Title # Comments Views Activity
Inequality 4 58
Communication with an active RFID 7 37
Dual bridge protection 18 49
Car computer reset 4 51
EE introduced a new rating method known as Level, which displays in your avatar as LVL. The new Level is a numeric ranking that is based on your Points. This article discusses the rationale behind the new method and provides the mathematical formula…
This story has been written with permission from the scammed victim, a valued client of mine – identity protected by request.
Notifications on Experts Exchange help you keep track of your activity and updates in one place. Watch this video to learn how to use them on the site to quickly access the content that matters to you.
Where to go on the main page to find the job listings. How to apply to a job that you are interested in from the list that is featured on our Careers page.

758 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question

Need Help in Real-Time?

Connect with top rated Experts

14 Experts available now in Live!

Get 1:1 Help Now