The Exchange Rate

When traveling abroad, you'll have to exchange the currency of your origin country for that of your destination, but what determines the rate at which these are exchanged? In short, the exchange rate of a country's currency is determined by its supply and demand rate in the country for which currency is being exchanged.

Exchange rate sites make it easier for people to plan their trips abroad, but it's important to note that along with an increase in cost for foreign currency oftentimes comes an increased price of goods and services there.