United States Dollar (USD)
Euro (EUR)
British Pound Sterling (GBP)
Japanese Yen (JPY)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Chinese Yuan (CNY)
Indian Rupee (INR)
Mexican Peso (MXN)
United States Dollar (USD)
Euro (EUR)
British Pound Sterling (GBP)
Japanese Yen (JPY)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Chinese Yuan (CNY)
Indian Rupee (INR)
Mexican Peso (MXN)
Conversion Result
Converted Amount: —
Exchange Rate Used: —
Understanding Currency Conversion
Currency conversion is the process of exchanging one currency for another. This is a fundamental activity in international trade, tourism, and global finance. The value of one currency relative to another is determined by the foreign exchange market (Forex).
How the Conversion is Calculated
The core of currency conversion relies on the exchange rate. An exchange rate is the value of one country's currency for the purpose of trading for another currency. Exchange rates fluctuate constantly based on supply and demand, economic indicators, geopolitical events, and market speculation.
The basic formula for currency conversion is:
Converted Amount = Amount to Convert × Exchange Rate
For example, if you want to convert 100 USD to EUR, and the current exchange rate is 1 USD = 0.92 EUR:
(Note: The rate from EUR to USD is the reciprocal of the rate from USD to EUR, though minor differences can occur due to bid-ask spreads in real markets).
Factors Affecting Exchange Rates
Interest Rates: Higher interest rates can attract foreign capital, increasing demand for the currency.
Inflation Rates: High inflation erodes purchasing power, typically weakening a currency.
Economic Performance: Strong GDP growth, low unemployment, and stable economic policies generally strengthen a currency.
Political Stability: Unstable political environments can lead to currency depreciation.
Trade Balances: A country with a consistent trade surplus may see its currency appreciate.
Market Speculation: Traders buying or selling currencies based on anticipated future movements can significantly impact short-term rates.
Use Cases for Currency Conversion
International Travel: Tourists need to convert their home currency to the local currency for expenses.
International Business: Companies involved in import/export must convert currencies to pay suppliers or receive payments.
Online Shopping: When purchasing from international websites, your bank or the payment processor will perform a currency conversion.
Investment: Investors may convert currencies to invest in foreign assets or hedge against currency risk.
Remittances: Individuals sending money to family or friends in another country need currency conversion services.
Disclaimer
The exchange rates used by this calculator are for illustrative purposes only and may not reflect real-time market rates or the rates offered by financial institutions. Actual conversion rates may vary based on the provider, transaction fees, and the exact time of the transaction.
// NOTE: In a real-world application, you would fetch live exchange rates from an API.
// For this example, we are using a fixed set of indicative rates.
var exchangeRates = {
"USD": {
"EUR": 0.92, "GBP": 0.79, "JPY": 150.50, "CAD": 1.36, "AUD": 1.52, "CHF": 0.89, "CNY": 7.23, "INR": 83.10, "MXN": 16.75
},
"EUR": {
"USD": 1.09, "GBP": 0.86, "JPY": 163.60, "CAD": 1.48, "AUD": 1.65, "CHF": 0.97, "CNY": 7.87, "INR": 90.35, "MXN": 18.20
},
"GBP": {
"USD": 1.27, "EUR": 1.16, "JPY": 190.20, "CAD": 1.72, "AUD": 1.92, "CHF": 1.13, "CNY": 9.15, "INR": 105.00, "MXN": 21.15
},
"JPY": {
"USD": 0.0066, "EUR": 0.0061, "GBP": 0.0053, "CAD": 0.0090, "AUD": 0.010, "CHF": 0.0059, "CNY": 0.048, "INR": 0.55, "MXN": 0.11
},
"CAD": {
"USD": 0.74, "EUR": 0.68, "GBP": 0.58, "JPY": 110.70, "AUD": 1.12, "CHF": 0.66, "CNY": 5.32, "INR": 61.05, "MXN": 12.30
},
"AUD": {
"USD": 0.66, "EUR": 0.60, "GBP": 0.52, "JPY": 98.90, "CAD": 0.89, "CHF": 0.59, "CNY": 4.75, "INR": 54.50, "MXN": 11.00
},
"CHF": {
"USD": 1.12, "EUR": 1.03, "GBP": 0.88, "JPY": 125.60, "CAD": 1.51, "AUD": 1.35, "CNY": 6.37, "INR": 73.00, "MXN": 14.80
},
"CNY": {
"USD": 0.14, "EUR": 0.13, "GBP": 0.11, "JPY": 20.00, "CAD": 0.19, "AUD": 0.21, "CHF": 0.16, "INR": 11.50, "MXN": 2.33
},
"INR": {
"USD": 0.012, "EUR": 0.011, "GBP": 0.0095, "JPY": 18.10, "CAD": 0.21, "AUD": 0.18, "CHF": 0.14, "CNY": 0.087, "MXN": 0.20
},
"MXN": {
"USD": 0.060, "EUR": 0.055, "GBP": 0.047, "JPY": 9.00, "CAD": 0.50, "AUD": 0.45, "CHF": 0.27, "CNY": 0.43, "INR": 5.00
}
};
// Add self-rates for the same currency
for (var currency in exchangeRates) {
exchangeRates[currency][currency] = 1.0;
}
function calculateConversion() {
var amount = parseFloat(document.getElementById("amount").value);
var sourceCurrency = document.getElementById("sourceCurrency").value;
var targetCurrency = document.getElementById("targetCurrency").value;
var resultElement = document.getElementById("convertedAmount");
var rateElement = document.getElementById("exchangeRateUsed");
// Clear previous results
resultElement.textContent = "–";
rateElement.textContent = "–";
// Validate input
if (isNaN(amount) || amount <= 0) {
alert("Please enter a valid positive amount to convert.");
return;
}
var rate = 0;
if (exchangeRates[sourceCurrency] && exchangeRates[sourceCurrency][targetCurrency] !== undefined) {
rate = exchangeRates[sourceCurrency][targetCurrency];
} else {
// Fallback for missing rate (should not happen with comprehensive rates)
alert("Exchange rate not available for the selected currencies.");
return;
}
var convertedAmount = amount * rate;
// Display results
resultElement.textContent = convertedAmount.toFixed(2) + " " + targetCurrency; // Use target currency code
rateElement.textContent = "1 " + sourceCurrency + " = " + rate.toFixed(4) + " " + targetCurrency;
// Optional: Add visual feedback or animation for result
document.getElementById("result").style.backgroundColor = "#d4edda"; // Light green for success
setTimeout(function() {
document.getElementById("result").style.backgroundColor = "#e9ecef"; // Reset to default
}, 2000);
}