The forex spot rate, also known as the spot exchange rate, refers to the current market price at which one currency can be exchanged for another currency for immediate delivery. It represents the value of a currency pair at the present moment in the foreign exchange market.

The spot rate is determined by the interaction of supply and demand forces in the forex market. Various factors such as economic indicators, political events, market sentiment, and interest rate differentials influence the spot rate. Market participants, including banks, financial institutions, corporations, and individual traders, continuously engage in buying and selling currencies at the prevailing spot rates.

The forex spot rate is different from the forward rate, which refers to the exchange rate for a future delivery date. Unlike the forward rate, the spot rate involves the immediate settlement of the currency exchange transaction.

Traders and investors closely monitor spot rates as they provide real-time information on currency values, allowing them to make timely trading decisions. The spot rate serves as a benchmark for other financial instruments, such as currency futures, options, and derivatives, which derive their values from the underlying spot rate.