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Foreign Currency - Keeping Track

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Can you explain how I can keep track of what one foreign currency is worth in dollars?

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Solution Summary

The solution explains how to keep track of exchange rates for foreign currencies.

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First of all let me explain you the basics of foreign exchange or currency:

The foreign exchange market is a dynamic market and is not uniform through out through out the world. It may be regulated or semi regulated or totally free. Hence the currency management has gained importance. This is more visible now due to rapid globalization and increasing volatility in the external environment. Foreign exchange refers to money denominated in the currency of another country. The exchange rate is a price-the number of units of one nation's currency that must be surrendered in order to acquire one unit of another nation's currency. In the spot market, there is an exchange rate for every other national currency The forex market is essentially governed by the law of supply and demand and is generally not regulated by any government or coalition of governments. This is true in the U.S., where participation in the forex market is not regulated. The prices set for each country's money is determined by the desire of those trading to acquire more of it or to hold less of it. Each individual acts on the belief that he or she will benefit from the transaction. Need of foreign exchange:
? They are needed to conduct international transactions like import and export of goods and services. It is a common mechanism for providing access to foreign currencies, so that payments can be made in a form acceptable to foreigners. In other words, there is need for "foreign ...

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