Currency Converter
Convert between 24 world currencies instantly. Check live exchange rates for forex, travel, and business.
Major Currency Pair Rates
Exchange rates shown are indicative and updated periodically. They may differ from live market rates. For live trading rates, please consult your broker's platform directly.
Understanding Currency Exchange Rates
How Exchange Rates Work in Forex
An exchange rate tells you how much of one currency you need to buy one unit of another. When EUR/USD is 1.0850, it means 1 Euro costs $1.0850. Exchange rates fluctuate constantly during trading hours based on supply and demand, which is driven by economic data, central bank policies, political events, and market sentiment. The forex market trades over $7.5 trillion daily — making it the largest and most liquid financial market in the world.
Base Currency vs. Quote Currency
In any currency pair, the first currency is the 'base' and the second is the 'quote.' EUR/USD = 1.0850 means 1 EUR (base) equals 1.0850 USD (quote). When the rate goes up, the base currency is strengthening. When it goes down, the base is weakening. This convention is universal across all forex brokers and trading platforms.
Bid, Ask, and the Spread
Every currency pair has two prices: the bid (selling price) and the ask (buying price). The difference is the spread — the cost of converting. If EUR/USD has a bid of 1.0848 and ask of 1.0850, the spread is 0.0002, or 2 pips. Banks and airport exchanges charge much wider spreads (2-5%) compared to forex brokers (0.01-0.1%).
Factors That Move Exchange Rates
The five primary drivers of exchange rates are: (1) Interest rate differentials — higher rates attract capital, strengthening the currency. (2) Economic data — strong GDP, employment, and inflation data signal a healthy economy. (3) Central bank policy — hawkish (tightening) vs. dovish (easing) signals. (4) Political stability — elections, trade wars, and geopolitical events create uncertainty. (5) Market sentiment — risk-on flows favor commodity currencies (AUD, NZD), while risk-off favors safe havens (USD, JPY, CHF).
Frequently Asked Questions
Why are exchange rates different at banks vs. forex brokers?
Banks and currency exchange kiosks add a large markup (2-5%) to the interbank rate to earn profit on conversions. Forex brokers offer rates much closer to the true market rate with spreads of only 0.01-0.1%. If you're converting large amounts, using a forex broker or specialized service like Wise can save hundreds or thousands of dollars compared to bank rates.
What is the most traded currency in the world?
The US Dollar (USD) is involved in approximately 88% of all forex transactions, making it the world's reserve currency. EUR is second at ~31%, followed by JPY (~17%), GBP (~13%), and AUD (~7%). The most traded pair is EUR/USD, accounting for about 23% of all daily forex volume.
When do exchange rates change?
Exchange rates change continuously during trading hours (Sunday 5 PM EST to Friday 5 PM EST). The most significant movements occur during major market session overlaps and around economic data releases. Rates are fixed over weekends when markets are closed, but may gap at the Sunday open if significant events occur.
How accurate are the rates shown here?
The rates shown are indicative mid-market rates and are updated periodically. They represent a close approximation of real-time interbank rates. For actual trading, always use the live rates provided by your forex broker, as they may differ slightly due to spread and market conditions.