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Floating Exchange Rate

Floating Exchange Rate

A floating (flexible) exchange rate is the biggest category and the most likely type of exchange rate  that  one will encounter when traveling. A flexible exchange rate rises or declines daily, based on a variety of economic factors and market forces. It’s neither pegged nor controlled by central banks. 

In the modern world, most of the currencies are floating. Among them are: the United States dollar, euro, the Swiss franc, the Indian rupee, the British pound, the Japanese yen, and the Australian dollar. 

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