Prevailing Exchange Rate means the exchange rate prevailing as between the currency in which the relevant Unhedged Share Class is denominated and the Fund Base Currency. Prevailing Exchange Rate means the spot exchange rate of the relevant currency in the local or global exchange market (as the case may be).

What is the meaning of nominal exchange rate?

The nominal exchange rate E is defined as the number of units of the domestic currency that can purchase a unit of a given foreign currency. A decrease in this variable is termed nominal appreciation of the currency. ... An increase in this variable is termed nominal depreciation of the currency.

What is the exchange rate that prevails in the forward market?

Exchange rate that prevails in a forward contract for purchase or sale of foreign exchange is called Forward Rate. Thus, forward rate is the rate at which a future contract for foreign currency is made. This rate is settled now but actual transaction of foreign exchange takes place in future.