Afinoz Currency Converter

Calculate foreign exchange rates, live currency with our free currency converter
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1 USD = 1.00 INR,
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Calculate foreign exchange rates quickly and easily
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Indian Rupee ₹
1 USD = 1.00 INR,
1 INR = 1.00 USD
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Currency Converter

A tool to calculate the conversion values for two currencies is known as currency converter tool. The main purpose of this tool is to show the value of a currency to the relative values of other currencies. It is highly useful for people who regularly deal with foreign exchange or for people frequently travel across the globe for business. 
People can use currency converter to find the money exchange rate and the value of the total amount which they wish to exchange the sum available with them. 
Afinoz Currency Converter is Fintech World’s first Online Currency Converter in India. The Currency Converter is easy to use and is updated frequently. You can check the currency rates against all the world currencies with Afinoz Currency Converter. Given the extreme volatility in global currencies lately, the Currency Converter is the need of everyone to keep themselves abreast of the market scenario. 

Why Currency Conversion Rates Change

Money is the value assigned to a commodity. It can be of varied types – commodity money, representative money, fiat money, and commercial bank money. 
The value of money keeps changing with society and its economic conditions. 10 rupee in the year 1980 is not the same as one rupee today, both in terms of appearance and purchasing power.
The value of money is dependent on factors that affect the economy such as imports and exports, interest rates, investment inflows, growth rate, geopolitical conditions, trade deficit, the performance of equity markets, foreign exchange reserves, foreign, banking capital, commodity prices. 

Fixed and Floating Exchange Rates

An exchange rate is a value or price paid for one currency with another. There are mainly two main types of exchange rates system existing. 
Fixed Exchange Rate -

When the Government decides the conversion rate, it is termed as a fixed exchange rate. 

Floating Exchange Rates -

While the rate which is described by market forces is called floating exchange rates. 
The fixed exchange rate is officially in terms of gold or any other currency by the Government. The change in the demand and supply of foreign currency does not change the rates.
Whereas the floating exchange rate is determined by forces of demand and supply in the foreign exchange rate. The change in the demand and supply of foreign currency influences the floating exchange rates. The government has no role to play in this front.

 

Determinants of Exchange Rate 

The country’s economic health is determined through foreign exchange rate which is considered to be one of the most important means. The foreign exchange rate provides a mirror of the economic stability of the country. This is why it is constantly watched and analyzed. People planning to send or receiving money from overseas need to keep a keen eye on the fluctuating currency rates. We need to understand what determines exchange rates. Let us have a look at them.
Economic Growth – 

A strong growth rate in the country will see a growing demand for products and services with better job prospects and becoming an attractive destination for capital and investments. The economic strength of a currency can go a long way in boosting the strength of the nation’s currency. 
A country’s GDP is the easiest way to watch a country’s economic standing. A growth of 3 percent or more is considered as strong GDP reading, while growth at zero or in negative can be taken as the recession. A GDP gives a report on how the market is performing. The strongest currencies in the world have a strong GDP. 
User can take the help of Afinoz Currency Converter to find out the variations in time in the exchange rates of different currencies.

Inflation -

The rise in the prices of goods and services is termed as inflation. It is generally considered healthy for a country to have a moderate increase in inflation in a growing economy. 
A consistently lower inflation rate of a Currency is responsible for rising currency value. While a country sees depreciation in its currency with higher inflation and is usually accompanied by higher interest rates.  

Interest Rates – 

It is the amount that costs to borrow money. A higher interest rate imposes a costly fee to the individuals, while lower interest rates lessen the fee and allow more borrowing. 
Currency Rates are an important factor contributing to the general strength or weakness of a currency.  

Current Account Deficit –  

 The current account deficit reflects that the country is spending more on foreign trade than it is earning. To make up for the deficit in its own reserves, the country is borrowing capital from foreign sources. When the demand for foreign currency increases, it lowers the country’s exchange rate until domestic goods and services are reasonable for non-residents and foreign assets are too expensive to generate sales for domestic interests.  

Along with the economic factors, there are few geopolitical criteria influencing the exchange rate. Below we will be discussing a few of them 

Political Stability and Performance –  

Appreciation of Currency Exchange Rates are attracted to a country with a healthy political state and economic performance. When the flow of foreign capital increases it leads to an appreciation in the value of its domestic currency.  
Countries that are prone to political confusion will see a depreciation in exchange rates. When the financial and trade policy of the country is sound and healthy, it does not give any room for uncertainty in the value of its currency. While a country with a healthy political state always attracts investors.  

Government Debt –   

Debt is owned by Central Government is also known as public debt. It is difficult to acquire foreign capital for countries with government debt. This leads to inflation.  
The value of the exchange rates will decline if foreign investors sell their bonds in the open market sensing the market predicts of a country.  

Terms of Trade –  

If the import price is greater than the country’s export price, its terms of trade improve. This ultimately results in higher revenue causing higher demand for the country’s currency and in its value. This further results in an appreciation of exchange rates.    

Wars, Flood, Famine or Droughts –   

 Whether it is internal war or external, it leads to the weakening of the currency exchange rates. All types of political and economic activities are affected by wars taking place. Natural calamities also lead to loss of economic strength. The country will focus on taking care of the disaster, than on developing the economy which eventually lowers the currency exchange rates.    

How is Foreign Exchange Rates Determined in India

The determination of foreign exchange rates in India is influenced by a combination of market factors. No institution or organization determines the exchange rate of Rupee currently. India followed the fixed exchange rate system prior to the period of economic liberalization in the 1990s. The value in the currency will move in tandem with the currency or currencies to which it was pegged. 
Factors like Inflation in the country, Repo Rate, Level of Current Account Deficit, Amount of Public Debt, Economic growth and stability are mainly responsible for determining the foreign currency exchange rate in India.

Advantages of Online Currency Exchange trading on the basis of Currency Converters

Today moving money nationally or internationally is no longer a tussle. Millions of users rely on Currency Converters to check the value of the currency and transfer money to their loved ones. When money moves quickly, easily and reliably many important tasks get addressed. 
Making International payments is risky which requires the most trusted source to perform the operations. Better ways have come via digital delivery with all personal or business payments now can be completed with few clicks online.

The biggest advantage of Online Currency Exchange is to save time and resources while making a digital transaction. 

It is the safest, fastest, and most reliable route to transfer money.

Online rate alerts let one know when a pre-set exchange rate target is reached so that you can transact at optimal times.

Transacting online has another advantage of integrating other digital foreign exchange tools.

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