What is a currency exchange rate?

An exchange rate is a rate at which one currency will be exchanged for another currency. Most exchange rates are defined as floating and will rise or fall based on the supply and demand in the market. Some exchange rates are pegged or fixed to the value of a specific country's currency.

What is exchange rate & how does it affect trade?

An exchange rate is a rate at which one currency will be exchanged for another currency and affects trade and the movement of money between countries. Exchange rates are impacted by both the domestic currency value and the foreign currency value.

Is the XE Currency Converter still free?

Scan me! Since 1995, the Xe Currency Converter has provided free mid-market exchange rates for millions of users. Our latest currency calculator is a direct descendent of the fast and reliable original "Universal Currency Calculator" and of course it's still free!

What is a free-floating exchange rate?

A free-floating exchange rate rises and falls due to changes in the foreign exchange market . A fixed exchange rate is pegged to the value of another currency. The Hong Kong dollar is pegged to the U.S. dollar in a range of 7.75 to 7.85. 3 This means the value of the Hong Kong dollar to the U.S. dollar will remain within this range.