Exchange rates
How to read a rate, devaluation, the effect of interest rates and exchange-rate regimes.
An exchange rate shows the price of one currency in another. EUR/USD = 1.10 means that 1 euro costs 1.10 dollars.
Devaluation is a fall in the value of the national currency. Imported goods priced in it get more expensive, and exporters receive more national currency for the same revenue.
Higher interest rates, other things being equal, can support a currency because they attract capital.