Currency Converter

Exchange rates fluctuate constantly based on supply and demand in the global foreign exchange (forex) market, the largest financial market in the world with over $7.5 trillion traded daily. Rates are influenced by interest rates, inflation, trade balances, and geopolitical events.

When converting currencies for travel or international transfers, keep in mind that banks and exchange services typically add a markup of 1-3% above the mid-market rate shown here. For the best rates, consider using online transfer services like Wise (formerly TransferWise) or withdrawing from ATMs abroad using a no-foreign-fee debit card.

The most traded currency pairs globally are EUR/USD, USD/JPY, GBP/USD, and USD/CHF. These major pairs account for the majority of forex trading volume and typically have the tightest spreads.

Interest rate differentials are the primary driver. When a country raises interest rates, its currency typically strengthens because higher rates attract foreign capital. The US dollar strengthened significantly in 2022-2023 as the Fed raised rates aggressively, and has weakened in 2026 as rate cuts are expected.

Inflation erodes a currency's purchasing power. Countries with lower inflation tend to see their currencies appreciate over time. Trade balances also matter — countries that export more than they import create demand for their currency, pushing it higher.

Geopolitical events can cause sudden, sharp currency moves. The Iran war in 2026 sent the US dollar lower as safe-haven flows shifted to gold and the Swiss franc. Tariff announcements regularly move currency pairs by 1-2% in a single session.

Avoid exchanging currency at airports — they typically charge 5-10% above the mid-market rate. Instead, use your bank's ATM network abroad (check for foreign transaction fees first), or use a multi-currency card like Wise or Revolut that offers near-mid-market rates with minimal fees.

For large transfers (buying property abroad, paying international invoices), compare rates from multiple providers. The difference between a bank wire and a specialized forex broker can be 1-3%, which on a $100,000 transfer means $1,000-$3,000 in savings.