Historical Exchange Rate Analyzer
The amount of money you are converting or analyzing.
Exchange rate at the start date.
Exchange rate at the end date.
Value at Period A:
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Value at Period B:
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Absolute Difference:
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Percentage Change:
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Market Movement:
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About Historical Exchange Rates
Understanding historical exchange rates is crucial for financial analysis, international business, and travel planning. While current spot rates tell you what a currency is worth today, historical rates provide context regarding market volatility, trends, and long-term economic shifts.
This calculator allows you to input two specific exchange rates from different time periods to analyze how the value of a specific amount of currency has changed over time. This is particularly useful for:
- Audit and Accounting: Revaluing foreign currency assets based on rates from previous fiscal years.
- Investment Analysis: determining the gain or loss on foreign investments solely due to currency fluctuations (FX risk).
- Travel Budgeting: Comparing purchasing power between different trips.
How to Interpret the Results
When analyzing the difference between a historical rate (Period A) and a comparison rate (Period B), consider the following:
Appreciation: If the rate increases (e.g., from 1.10 to 1.20), the Base Currency has strengthened against the Target Currency. Your base currency buys more units of the target currency.
Depreciation: If the rate decreases (e.g., from 1.10 to 1.05), the Base Currency has weakened. Your base currency buys fewer units of the target currency.
Where to Find Historical Data
To use this calculator effectively, you need accurate historical rate data. Reliable sources include:
- Central Banks: The Federal Reserve, ECB, or Bank of England publish daily reference rates going back decades.
- Financial Data Platforms: Bloomberg, Reuters, or specialized Forex history websites.
Example Calculation
Imagine a US business held $10,000 USD intended for conversion to Euros.
- Period A (Last Year): Rate was 0.85 EUR/USD. Value = €8,500.
- Period B (Today): Rate is 0.92 EUR/USD. Value = €9,200.
- Result: The strengthening of the dollar resulted in a €700 gain in purchasing power without any underlying investment growth.