Understanding Exchange Rates
An exchange rate is the value of one currency for the purpose of trading it for another. Exchange rates are determined by the supply and demand for currencies in the foreign exchange market. They fluctuate constantly due to a variety of factors, including economic stability, political events, interest rates, and inflation.
When you exchange money, the rate you get tells you how much of one currency you can buy with a unit of another. For example, if the EUR/USD exchange rate is 1.10, it means that one Euro can buy 1.10 US Dollars.
How This Calculator Works:
This calculator helps you quickly convert an amount from one currency to another based on current, albeit simulated, exchange rates. Simply input the amount you wish to convert, select your base currency (the currency you have), and then choose the target currency (the currency you want). Click "Convert" to see the equivalent amount in your desired currency.
Important Note: The exchange rates used in this calculator are for illustrative purposes only and do not reflect real-time market rates. For actual currency conversions, always consult a reputable financial institution or a live currency exchange service.
Factors Affecting Exchange Rates:
- Interest Rates: Higher interest rates can attract foreign capital, increasing demand for a country's currency.
- Inflation: High inflation tends to devalue a currency, leading to a lower exchange rate.
- Economic Performance: A strong economy with low unemployment and steady growth typically strengthens its currency.
- Political Stability: Countries with stable political environments are more attractive to investors, boosting their currency's value.
- Trade Balance: A country with a trade surplus (exports more than it imports) may see its currency appreciate.
function calculateExchangeRate() {
var amountToConvert = parseFloat(document.getElementById("amountToConvert").value);
var baseCurrency = document.getElementById("baseCurrency").value;
var targetCurrency = document.getElementById("targetCurrency").value;
var resultDiv = document.getElementById("result");
if (isNaN(amountToConvert) || amountToConvert <= 0) {
resultDiv.innerHTML = "Please enter a valid positive number for the amount to convert.";
return;
}
// Simulated exchange rates (for demonstration purposes)
// In a real application, you would fetch these from an API
var rates = {
"USD": { "EUR": 0.93, "GBP": 0.79, "JPY": 150.00, "CAD": 1.36, "AUD": 1.52, "CHF": 0.89, "CNY": 7.20, "SEK": 10.50, "NZD": 1.65 },
"EUR": { "USD": 1.08, "GBP": 0.85, "JPY": 161.00, "CAD": 1.46, "AUD": 1.63, "CHF": 0.96, "CNY": 7.74, "SEK": 11.30, "NZD": 1.77 },
"GBP": { "USD": 1.27, "EUR": 1.18, "JPY": 189.00, "CAD": 1.72, "AUD": 1.91, "CHF": 1.13, "CNY": 9.10, "SEK": 13.30, "NZD": 2.08 },
"JPY": { "USD": 0.0067, "EUR": 0.0062, "GBP": 0.0053, "CAD": 0.0090, "AUD": 0.0101, "CHF": 0.0059, "CNY": 0.048, "SEK": 0.070, "NZD": 0.10 },
"CAD": { "USD": 0.74, "EUR": 0.68, "GBP": 0.58, "JPY": 111.00, "AUD": 1.11, "CHF": 0.66, "CNY": 5.30, "SEK": 7.70, "NZD": 1.21 },
"AUD": { "USD": 0.66, "EUR": 0.61, "GBP": 0.52, "JPY": 99.00, "CAD": 0.90, "CHF": 0.59, "CNY": 4.70, "SEK": 6.90, "NZD": 1.09 },
"CHF": { "USD": 1.12, "EUR": 1.04, "GBP": 0.88, "JPY": 168.00, "CAD": 1.50, "AUD": 1.68, "CNY": 8.00, "SEK": 11.60, "NZD": 1.81 },
"CNY": { "USD": 0.14, "EUR": 0.13, "GBP": 0.11, "JPY": 20.90, "CAD": 0.19, "AUD": 0.21, "CHF": 0.12, "SEK": 1.45, "NZD": 0.23 },
"SEK": { "USD": 0.095, "EUR": 0.088, "GBP": 0.075, "JPY": 15.20, "CAD": 0.13, "AUD": 0.15, "CHF": 0.086, "CNY": 0.69, "NZD": 0.16 },
"NZD": { "USD": 0.61, "EUR": 0.56, "GBP": 0.48, "JPY": 122.00, "CAD": 1.10, "AUD": 0.92, "CHF": 0.55, "CNY": 4.30, "SEK": 6.20 }
};
// Add self-conversion (1:1)
if (baseCurrency === targetCurrency) {
resultDiv.innerHTML = "Converted Amount: " + amountToConvert.toFixed(2) + " " + targetCurrency + "";
return;
}
var exchangeRate = rates[baseCurrency]?.[targetCurrency];
if (exchangeRate === undefined) {
resultDiv.innerHTML = "Exchange rate not available for this pair.";
return;
}
var convertedAmount = amountToConvert * exchangeRate;
resultDiv.innerHTML = "Converted Amount: " + convertedAmount.toFixed(2) + " " + targetCurrency + "";
}
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