Question: What Are Exchange Rates?
Answer: The dollar's exchange rate tells you how much a dollar is worth in a foreign currency, and vice versa. For example, on March 3, 2008, a dollar was worth $.98 Canadian dollars, 7.01 Chinese yuan, and 103.57 Japanese yen. The Euro is normally quoted in terms of its dollar value, for some reason, so one Euro was worth $1.52.
(Source: Federal Reserve Bank of New York web site)
