Exchange Rate Calculator Custom

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Currency Exchange Rate Calculator

USD – United States Dollar EUR – Euro GBP – British Pound JPY – Japanese Yen AUD – Australian Dollar CAD – Canadian Dollar CHF – Swiss Franc CNY – Chinese Yuan SEK – Swedish Krona NZD – New Zealand Dollar
USD – United States Dollar EUR – Euro GBP – British Pound JPY – Japanese Yen AUD – Australian Dollar CAD – Canadian Dollar CHF – Swiss Franc CNY – Chinese Yuan SEK – Swedish Krona NZD – New Zealand Dollar

Result will be displayed here.

// Predefined exchange rates (these would typically be fetched from an API) // Rates are relative to USD for simplicity in this example var exchangeRates = { "USD": 1.0000, "EUR": 0.9200, // 1 USD = 0.92 EUR "GBP": 0.7900, // 1 USD = 0.79 GBP "JPY": 156.50, // 1 USD = 156.50 JPY "AUD": 1.5000, // 1 USD = 1.50 AUD "CAD": 1.3600, // 1 USD = 1.36 CAD "CHF": 0.8900, // 1 USD = 0.89 CHF "CNY": 7.2300, // 1 USD = 7.23 CNY "SEK": 10.6000, // 1 USD = 10.60 SEK "NZD": 1.6400 // 1 USD = 1.64 NZD }; function calculateExchangeRate() { var amountToConvert = parseFloat(document.getElementById("amountToConvert").value); var baseCurrency = document.getElementById("baseCurrency").value; var targetCurrency = document.getElementById("targetCurrency").value; var resultElement = document.getElementById("result"); // Input validation if (isNaN(amountToConvert) || amountToConvert <= 0) { resultElement.innerHTML = "Please enter a valid positive amount to convert."; return; } // Get rates relative to USD var baseRate = exchangeRates[baseCurrency]; var targetRate = exchangeRates[targetCurrency]; if (baseRate === undefined || targetRate === undefined) { resultElement.innerHTML = "Error: Exchange rate not found for selected currencies."; return; } // Convert the amount to USD first, then to the target currency // If baseCurrency is USD, baseRate is 1.0000 // If targetCurrency is USD, targetRate is 1.0000 var amountInUSD = amountToConvert / baseRate; var convertedAmount = amountInUSD * targetRate; resultElement.innerHTML = "" + amountToConvert.toFixed(2) + " " + baseCurrency + " is equal to " + convertedAmount.toFixed(2) + " " + targetCurrency + ""; }

Understanding Currency Exchange Rates

Currency exchange rates are the backbone of international trade, travel, and finance. They represent the value of one country's currency in relation to another. When you exchange money, you're essentially buying one currency and selling another at a specific rate, known as the exchange rate.

What are Exchange Rates?

An exchange rate is the price of one currency expressed in terms of another currency. For instance, if the EUR/USD exchange rate is 1.08, it means that one Euro can be exchanged for 1.08 US Dollars. These rates are dynamic and fluctuate constantly based on a multitude of factors.

Factors Influencing Exchange Rates

Several key factors can influence currency exchange rates:

  • Interest Rates: Higher interest rates in a country can attract foreign capital, increasing demand for its currency and causing its value to rise.
  • Inflation Rates: Countries with lower inflation rates tend to see their currency appreciate because their purchasing power increases relative to other currencies.
  • Economic Performance: A strong economy, characterized by high GDP growth, low unemployment, and stable markets, generally leads to a stronger currency.
  • Political Stability: Countries with stable political environments are more attractive to investors, bolstering their currency's value. Geopolitical events or instability can cause significant depreciation.
  • Trade Balance: A country with a trade surplus (exports exceeding imports) typically sees higher demand for its currency, leading to appreciation.
  • Government Debt: High levels of national debt can sometimes signal economic weakness and lead to currency depreciation.
  • Market Speculation: Traders and investors speculate on future currency movements, and large-scale speculative activity can significantly impact exchange rates in the short term.

How Exchange Rates are Used

Exchange rates are crucial for:

  • International Travel: Tourists need to convert their home currency into the local currency of their destination.
  • International Trade: Businesses importing or exporting goods and services must deal with currency conversions, affecting the cost of goods and profit margins.
  • Foreign Investment: Investors looking to buy assets in another country need to exchange their currency.
  • Financial Markets: Forex (foreign exchange) markets are among the largest and most liquid financial markets globally, where currencies are traded.

Using Our Calculator

This calculator simplifies the process of converting one currency to another. Simply input the amount you wish to convert, select the original currency (From Currency), and the currency you want to convert to (To Currency). The calculator will then provide you with the equivalent amount in the target currency, based on current indicative rates.

Example: If you have 100 USD and want to see how much that is in Japanese Yen, you would enter '100' for "Amount to Convert", select 'USD' for "From Currency", and 'JPY' for "To Currency". The calculator would then display the equivalent amount in JPY.

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