Glossary entry

Exchange rate

An exchange rate is the price of one currency expressed in another, for example how many Indian rupees one British pound buys. It moves continuously as banks, companies and investors buy and sell, so a figure is only a snapshot of one moment. The rate shown on a search page is usually a wholesale reference, while the rate on a transfer quote includes the provider's margin and can be a little weaker. When you compare options, look at the rupees the recipient would receive rather than the rate alone. See also: mid-market rate, spot rate, margin, and the guide How Exchange Rates Work.