What can you do with a currency chart?


Quick Answer

Currency charts allow you to see the differences in values for a set denomination of money across different forms of legal tender, known as an exchange rate. Some currency charts also provide information about historical price points that aids in making investments internationally as well as predicting the economic state of a country.

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Full Answer

The most basic types of currency charts show a simple conversion from one type of money to another for a single unit, such as the equivalent of one U.S. dollar in euros. These charts are useful if you are planning a trip to another country or purchasing something from that country, as you are able to understand the relative value of your money. Such charts typically convey the exchange rate according to a periodic valuation from that country's government rather than in real time. As such, it may also help to understand the economic strength and significance of one country compared to another.

Some currency charts also include graphs of past values, which show how different currencies increase and decrease in relative value over time. These also help to identify major shifts in the country's economy or stock market, where low values correspond to a weaker financial climate. Many investors use these charts to determine whether or not to buy stocks from companies in other countries. Similarly, it is also helpful for companies that do business internationally.

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