The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The foreign exchange market is unique because of
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29/07/2010
The dollar may advance, after sliding 6.4 percent against the euro this month, as the U.S. economic recovery strengthens, according to Barclays Plc.
“Our e... more
The rand rallied to a 3 1/2-month high against the dollar.
South Africa’s currency appreciated as much as 0.8 percent to 7.2834 per dollar, the strongest l... more