: A government ties its currency's value to another major currency (often the USD) or a "basket" of currencies. For example, the Hong Kong Dollar is pegged to the U.S. Dollar.
Exchange rates are the prices at which one nation's currency can be traded for another, serving as a critical barometer for a country's economic health and global competitiveness. These rates fluctuate constantly in the market—the largest and most liquid financial market in the world—affecting everything from the cost of holiday travel to the price of imported electronics. How Exchange Rates Work exchange rates
: The first currency in the pair (e.g., EUR). It represents one unit. : A government ties its currency's value to