People dealing with overseas clients or travelling to a foreign country must know how much their currency will stretch against the client's or touring country's home currency. That's why they need a currency converter or money converter. For instance, while touring Sri Lanka, you can exchange only the required amount of US dollars for local currency to meet expenses. All you need to do is plan costs, use a currency converter calculator to know exchange rates, and encash only the required amount.

Currency Exchange Rates

INR
1
Currency Amount
AUD Australia 0.02
JPY Japan 1.65
GBP United Kingdom 0.01
USD United States 0.01
Last updated: Dec 05, 2022, 12:00 AM

Popular Conversions

How many Indian rupees will the exchange of dollars fetch in today's foreign exchange market? It should bring you INR 81.35 as per the exchange rate (03 October 2022). So what is the exchange rate? In the example, it is the equivalent of a dollar in Indian currency. 

In general, the exchange rate is the currency of one country's currency against another nation's currency. It is the monetary value of one country's currency exchanged for another country's currency. A country's Exchange rates may be fixed, free-floating, or hybrid as per their Foreign Exchange Regulations.

So, what is the difference between fixed, free-floating, and hybrid exchange rates? Scroll down to know.
 

Countries with fixed exchange rates link their currency exchange rate to the currency of another nation or oil or gold, or other commonly traded commodities. For instance, the USA exchange rate was pegged on gold from 1879 to 1933. While Saudi Arabia, Bahrain, UAE, and Qatar are some of the top countries that peg their exchange rate on the US dollar. The exchange rate links for convenience in trading between trade partners.

Fixed currency exchange rate facilitates the smooth flow of money from one country to another, affords small nations to maintain inflation stability by avoiding devaluation of their currency, and helps them attract foreign investment.
 

When the country's Government does not determine the currency exchange rate, the Foreign Exchange market assigns it to them depending on the demand and supply of currencies of other nations.
 

Hybrid currency exchange rates are a combination of free-floating and fixed rates. 

Factors Affecting Currency Value and its Exchange Rate  

The daily fluctuations are dependent on the following factors:

Inflation

When a nation consistently maintains its low inflation levels, its exchange rate appreciates and depreciates when the inflation rates rise constantly.

The Imports and Exports of the Country

A country's imports are an expenditure, but exports are an income. Thus higher exports will increase the demand for its currency in the foreign exchange market, but an increase in imports will make it fall. 

The Country Debts

A country needs to build its infrastructure for its economic growth. Although such projects reap substantial rewards in the future, the Government will need to fund them by borrowing from domestic and international lenders, putting the country in debt, which can make its currency fall.

Prevailing Interest Rates

One of the most significant attractions to foreign investors is high-interest rates. Thus foreign lenders will invest more in countries having high-interest rates as they will earn more. The increase in foreign investment will strengthen its currency.

The Nation's Deficits

A country will have deficits if it spends more than it earns in the international market. Such a situation will arise if the country's imports exceed its exports, and it will have to borrow to cover the deficits, bringing down its exchange rate.
 

Currency exchange rates fluctuate every day, and the best way to know them at a given time on a given day is to use the currency converter calculator. You can use a currency converter calculator to know the foreign exchange rate and then search for 'currency exchange near me' to find one nearest you to effect the conversion.
 

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FAQ’s

You can convert all major currencies using the currency converter.  
 

The currency converter app is available in about nine languages: English, French, German, Spanish, Italian, Portuguese, Russian, Chinese, and Japanese.
 

Currency conversion rates indeed differ from one company to another, and that is because the companies don't state the interbank rate as it is at a given time on a given day. They charge their commission on it, which is why there is a variation in the exchange rate conversion.
 

Forex is most active when the volatility and liquidity are the highest, which is the best time to buy or sell securities. Also, as the time changes worldwide as per time zones, it is advisable to check the overlapping time of the dominant currencies (dollar and Euro), for that's when currency trading is at its peak. Thus 8 a.m. to noon EST could be a good time for currency trading.