What determines foreign exchange rates
28 Aug 2019 Each of these methods may have different fees and exchange rates, so it's best to determine which method offers you the best rates so you can 22 Sep 2017 Foreign Exchange Rate is the amount of domestic currency that must be the foreign exchange rate is determined by the relative purchasing Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise.