This essay examines the impact and influence on the exchange rate from a number of angles. First, this paper introduces the key variables that the exchange rate, export, prices, and costs influence. Productivity is the rise that results from the local currency's strength. Thus, it suggests that productivity is impacted by the exchange rate. The impact on the amount of tourists is the final influential aspect. Some recommendations for exchange rate policy are made after examining the effects of the exchange rate. The exchange rate is a crucial component, so it's important to prioritise both logical operation and wise policy application.