Need For Currency Conversion
There are so many currencies across the globe that it gets very difficult to trade across countries. This is where and how Foreign exchange market came into the picture to deal with money transactions across currencies.
Foreign exchange market is an international arena where currency conversion takes place. In simple words one currency can be bought with another currency. For instance UK pounds can buy Australian dollars and vice versa. As there are too many currencies across the globe, we need currency convertor so that we can deal in any currency in any part of the world. Say for instance, you are from Australia and travelling to UK and you only have Australian dollars, then you would not be able to sustain in UK where the currency is UK pounds. This is one of the common instances where currency conversion is required.
Every currency can be exchanged against another currency and the denomination in a particular currency which is required to buy one unit of another currency is called currency exchange rate. For example 1 AUD is equivalent to 1.00067 USD. This is the exchange rate between the currencies of these two countries.
However, currency exchange rates are not constant and are subject to change as the relative value of currencies keep changing in the monetary market. This is when we need currency convertor calculator.
Currency convertor calculator helps in calculating the currency exchange rate of different currencies widely used in Foreign exchange market to calculate the rates at which foreign currencies will be exchanged.
A lot of profit can be made using the Currency convertor calculator. Let us assume that the currency exchange rate for Australian dollars against Indian rupees is 45. That means if you transfer 1 AUD to India you will get 45 rupees in your Indian bank. However, if that the value of INR increased with respect to AUD and the exchange rate becomes 55 from 45 rupees, then your currency exchange rates calculator indicates that you will now have 55 rupees in the Indian bank if you transfer the same 1 AUD.
This clearly indicates that you have incurred loss of 10Rs by transacting earlier when the currency exchange rate was low.