Floating Exchange rate determines the currency value with the respect to the other currency pairs. Moreoever, the floating exchange rate refers to the currencies that allow you to change freely to influenced the open market rather than to the fixed value over the another currency pairs.
![NZD/USD Rises Toward 0.5700 as Weak US PMI Data Pressures the Dollar](https://www.xtrememarkets.com/wp-content/uploads/2025/02/333.png)