How do you find the exchange rate for a currency?


Quick Answer

You can find the exchange rate for a currency by checking a financial website that covers the Forex market, such as Yahoo! Finance or Investopedia. The exchange rate is also available from large banks, especially those that offer currency exchanges.

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How do you find the exchange rate for a currency?
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Full Answer

An exchange rate lists the amount of one currency that you can exchange with a second currency. Since the rate represents two separate currencies, it shows two numbers. The first number represents one unit of the first currency, while the second number represents how much of the second currency makes up that single unit at that time. Currency rates also display symbols for both currencies; for example, "USD/CAD" means that the rate shows how many Canadian dollars equal a single US dollar.

Exchange rates can change 24 hours a day due to trading on the Forex market. To avoid rapidly changing rates, many countries fix their rates, choosing to peg a specific value to another currency. To keep up a fixed rate, the central bank of that country must trade on the Forex market, hedging against natural price movements by buying and selling its own or the pegged currency. Because the exchange rate can change at any time, sources for the exchange rate may be behind in reporting current rates. The delay between a change and a listed price is generally a small one.

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