Hi Barb,
Exchange rates are stored in the MC00100 table in the DYNAMICS database, and GP allow users to enter/save exchange rates with up to 7 decimal places.
We don’t have any known quality issues around those rates being truncated or rounded to 5 decimals in that table.
I double checked and tested this on the most recent version of GP, and my rate with 7 decimal places saved without a problem.
I was also able to enter/post a transaction with that rate, and it was stored with 7 decimal places in the GL20000 table.
Here’s my Journal Entry Inquiry window showing the rate with 7 decimal places:

With that being said, if you are looking at exchange rates in a core GP smart list, the exchange rate field is restricted to 5 decimal places in those canned lists as the field is formatted with a ‘currency’ format out of the box that allows up to five decimals to show.
If your rates are being rounded in the MC00100 table, I’d check into whether any 3rd parties/customizations are being used in conjunction with exchange rates to see if something may be coming into play there.
I hope this helps!
Thank you for using Microsoft Dynamics Communities,
Andrea Melroe
Sr. Technical Advisor
Microsoft Dynamics GP