Elena
Tue Jul 16 2024
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7 answers
1183
What is the difference between EURUSD spot exchange rate and forward rate?
Could you elaborate on the key distinctions between the EURUSD spot exchange rate and the forward rate? I'm curious to understand how they differ in terms of their definition, calculation, and usage. Specifically, does the spot rate represent the current exchange rate for immediate delivery, while the forward rate reflects a rate agreed upon today for a future transaction? Additionally, how do factors like interest rate differentials and expected currency movements influence the forward rate? I'm looking for a concise yet comprehensive explanation of these differences.
