The exchange rate is the value at which one currency can be exchanged for another. It tells you how much of one country’s currency you’ll get in return for another. For example, if 1 USD equals 280 PKR, that’s the exchange rate between the US Dollar and Pakistani Rupee. Exchange rates can be fixed by governments or float freely in the global market, changing daily based on demand, supply, and economic conditions. They play a key role in international trade, travel, and online transactions, influencing how much things cost across borders. A strong currency gives you more buying power abroad, while a weak one gives you less.