Exchange rates are the value of one country's currency for the purpose of trading it for another. They are crucial for international travel, global business, and sending money abroad. At ASB Bank, we aim to provide you with the tools and information you need to navigate these currency conversions with confidence.
When you convert money from one currency to another, the exchange rate determines how much of the second currency you will receive for a given amount of the first. For example, if the exchange rate between the US Dollar (USD) and the Euro (EUR) is 0.92, it means that 1 USD can be exchanged for 0.92 EUR. Conversely, if you want to convert EUR to USD, you would use the inverse rate or a different quoted rate depending on whether you are buying or selling the currency.
Several factors influence exchange rates, including:
Interest Rates: Higher interest rates can attract foreign capital, increasing demand for the currency.
Inflation: Countries with lower inflation rates tend to see their currency appreciate.
Economic Performance: Strong economic growth generally leads to a stronger currency.
Political Stability: Geopolitical events and stability play a significant role in currency markets.
Market Speculation: Traders' expectations about future currency movements can also impact rates.
Using an exchange rate calculator like the one below can help you get an estimate of how much a specific amount of one currency will convert to in another. Please note that the rates displayed are indicative and actual rates may vary at the time of transaction due to market fluctuations and any fees ASB Bank may apply.
USD – US Dollar
EUR – Euro
GBP – British Pound
AUD – Australian Dollar
NZD – New Zealand Dollar
JPY – Japanese Yen
USD – US Dollar
EUR – Euro
GBP – British Pound
AUD – Australian Dollar
NZD – New Zealand Dollar
JPY – Japanese Yen