For any exchanges the rates are always involved, to decide itsparticular market value.In Foreign Currency Exchange market, exchanged products arecurrencies, so we say the rate on behalf of exchanging currencies,which describes its value in the market.For example.. EUR/GBP=0.8650; 1 EURO = 0.8650 GBP ie. 1 GBP =1/0.8650 EURo ie. 1.1560 EUROIt actually simplifies both currencies market value in ForeignExchange Market.Simply exchange rates reflect a country's economic status,growth status, stability when compared to Another Country.