Ruby on Rails

The % is modulus (remainder) operator and ^ is bitwise. In this
context, we take a file, and go through each character and encrypt it.
But why are the ^ and % operators used here:

def encrypt(reader, writer)
key_index = 0
while not reader.eof?
clear_char = reader.getc
encrypted_char = clear_char ^ @key[key_index]
writer.putc(encrypted_char)
key_index = (key_index + 1) % @key.size
end
end

thanks for response

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