The price of one currency in terms of another is called the exchange rate. It affects the economy and our daily lives because they affect the price of domestically produced goods sold abroad and the cost of foreign goods bought domestically. Foreign exchange is usually traded as bank accounts denominated in different currencies.
Modern communications make it a truly global market.
The rates vary by minute. The closing rates in each financial center are reported regularly in the media. Because of the substantial time difference, the banks in Japan close before the start of business in the United States, so the closing exchange rates in Tokyo are reported on American radio and television in the early morning, often accompanied by midday quotes from Europe. The closing rates of the previous day are listed in the morning newspaper for leisurely reading.