Foreign currency refers to the money used in countries outside of your own. Each country has its own currency, such as the US Dollar, Euro, or Japanese Yen. When traveling or doing business internationally, you may need to exchange your local currency for the foreign currency of the country you are visiting or trading with. The value of foreign currency can fluctuate based on various factors, including economic conditions, interest rates, and political stability. This fluctuation is measured through the foreign exchange market, where currencies are bought and sold. Understanding foreign currency is essential for travelers, investors, and businesses engaged in global trade.