Currency Converter
Convert between world currencies using live exchange rates.
What is a Currency Converter?
A currency converter calculates the equivalent value of money in different currencies using current exchange rates. Exchange rates fluctuate constantly based on economic factors like interest rates, inflation, trade balances, and market sentiment. This tool uses regularly updated rates to give you a reliable estimate, though actual conversion rates at banks or exchanges may differ due to bid-ask spreads and service fees.
How to Use
- Select the currency you're converting from and the target currency.
- Enter the amount you want to convert.
- View the converted amount along with the current exchange rate and last update time.
Frequently Asked Questions
Why is the rate I get at a bank different from what I see here?
Banks and exchange services add a margin (spread) to the mid-market rate to make a profit. This spread can range from 0.5% for major currency pairs to 5%+ for exotic currencies. The rate shown here is the mid-market rate-the midpoint between buy and sell prices. For the best rates, compare services like Wise (formerly TransferWise), which typically charge 0.3–0.7%, versus traditional banks that may charge 2–4% plus fixed fees.
What causes exchange rates to change?
Rates are driven by supply and demand in forex markets. Key factors include central bank interest rate decisions, inflation differentials, political stability, trade balances, and speculative trading. Major events can cause rapid swings of several percent in hours. The forex market trades over $7 trillion daily, making it the largest financial market in the world.
What's the difference between floating and fixed exchange rates?
Most major currencies (USD, EUR, GBP, JPY) use floating rates determined by market forces. Some countries peg their currency to another (like Hong Kong's peg to USD) to maintain stability, which requires the central bank to actively buy or sell reserves. A few countries use a managed float where the rate is mostly market-driven but the central bank intervenes during extreme volatility.
