exchange rate

is simple:, a place where it is attractive for foreigners to invest will have a relatively high exchange rate and an unattractive place to invest will have a low exchange rate.

If a country is an attractive place for foreigners to invest their funds, then that country will have a relatively high exchange rate. If it's an unattractive place, it will have a relatively low exchange rate. Those are the fundamentals that determine the exchange rate in a floating exchange rate system. Milton Friedman

exchange rate, n.Definitions

exchange rate