Basically exchange rate is the Forex rate that tells the conversion rate of one currency into another currency. In other words it tells about how much is the worth of one currency in terms of another one. For example what is the worth of Pounds against dollars or vice versa. However interest rate is the fee or the charges which have to be paid as cost of capital like on assents lent, finance leases etc. It has nothing to do with the currency rate.
Moreover, The Foreign Exchange Market in the world is responsible for trading these currency conversions. While for interest rates, there are open markets where people invests and these market rates determines the interest rates.
Exchange rates are for a very brief time period and can change within minutes however, interest rates are for relatively longer periods.
Moreover, The Foreign Exchange Market in the world is responsible for trading these currency conversions. While for interest rates, there are open markets where people invests and these market rates determines the interest rates.
Exchange rates are for a very brief time period and can change within minutes however, interest rates are for relatively longer periods.
