Foreign currencies are the different types of money used in countries around the world. Each country has its own currency, such as the US Dollar, Euro, or Japanese Yen. These currencies are essential for international trade, travel, and investment, as they allow people to exchange money when dealing with different nations. The value of foreign currencies can fluctuate based on various factors, including economic conditions, interest rates, and political stability. This fluctuation is measured in currency exchange rates, which determine how much one currency is worth in relation to another. Understanding these rates is crucial for businesses and travelers engaging in global transactions.