Theresa84
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Mar 4, 2011, 9:40 PM
Post #1 of 1
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The currency exchange rate is the rate at which one currency can be exchanged for another. It is always quoted in pairs like the EUR/USD (the Euro and the US Dollar). Exchange rates fluctuate based on economic factors like inflation, industrial production and geopolitical events. These factors will influence whether you buy or sell a currency pair.
Currency values can change for many reasons. Sometimes they react to political and economic news, sometimes they are driven by speculators, and sometimes they are driven by international business flows. If companies in the United States are importing large quantities of products made in Europe, they will need to exchange their US Dollars for Euros to pay for the products. When this is done in very large quantity over a short period of time, it raises the demand for Euros and the value of the Euro versus the US Dollar increases. This happens because dollars are being sold on the open market, while Euros are being bought.
The EUR/USD rate represents the number of US Dollars one Euro can purchase. If you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit. Please keep in mind that forex trading involves a high risk of loss.
In modern society, trade transactions are often hidden in computers behind the doors of banks and mail-order companies. It is possible to buy a house, a ticket, or even a pair of shoes without ever meeting the seller face-to-face or passing money from one hand to another. To understand the meaning of currency and to appreciate why precise weights and measures were once necessary for fair trade, it is useful to examine trade practices in Africa several hundred years ago when trading transactions were quite visible and direct.
Currency Convertor Calculator give each visitor quick and easy access to currency conversion and exchange rates for the most popular currencies in circulation including US, EU, GB, BR, and JP currencies! You can see the most commonly converted currencies for more information on each individual currency and its conversion to the other most commonly converted currencies.
Some Country and Currency Code
America (United States of America), Dollars USD
Australia, Dollars AUD
Bahamas, Dollars BSD
Belgium, Euro EUR
Bermuda, Dollars BMD
Bulgaria, Leva BGN
Britain (United Kingdom), Pounds GBP
Brunei Darussalam, Dollars BND
Cambodia, Riels KHR
Canada, Dollars CAD
Cayman Islands, Dollars KYD
China, Yuan Renminbi CNY
JPY Japan Yen.
Cuba, Pesos CUP
Czech Republic, Koruny CZK
Dominican Republic, Pesos DOP
Egypt, Pounds EGP
England (United Kingdom), Pounds GBP
Euro EUR
France, Euro EUR
Holland (Netherlands), Euro EUR
Hong Kong, Dollars HKD
Indonesia, Rupiahs IDR
Malaysia, Ringgits MYR
New Zealand, Dollars NZD
Philippines, Pesos PHP
Singapore, Dollars SGD
South Africa, Rand ZAR
South Korea, Won KRW
Switzerland, Francs CHF
Taiwan, New Dollars TWD
Thailand, Baht THB
Turkey, Liras TRL
Vietnam, Dong VND
Zimbabwe, Zimbabwe Dollars ZWD
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