How are exchange rates determined?

The currency exchange rate is considered in relation to another currency, or a basket of currencies. Exchange rates can be floating rates, determined by free market factors, such as the economic health of a country, or fixed rates set by central banks. Spreads are not included in the FxLeaders currency converter, but usually, you get tighter conversion spreads through online brokers if you want to buy one currency with another one, and higher conversion spreads on over-the-counter dealers, such as banks and foreign exchange offices.

How to calculate an exchange rate?

Basically, by multiplying the conversion rate by the amount you want to exchange. For EUR 500, you would need 1.13 x 500 = $650. But, the FXLeaders exchange rate calculator makes life very easy. It offers the exchange rate of a single unit of currency for another, as well as the total amount of foreign currency in exchange for the amount of the currency you want to exchange. Physical currency exchange comes with exchange rates and/or fees, but the closer to the FXLeaders exchange rate/amount, the better the deal from your FX exchange agent.

How often do foreign exchange rates change?

Foreign exchange rates change continuously 24/5, and they often also fluctuate over the weekend, opening with market gaps. Usually the exchange rates move slowly, resulting in major differences for a normal traveler, but at times there are some huge fluctuations in live exchange rates, due to economic or political news. Our currency converter updates live exchange rates every 5 seconds, exclusive to FXLeaders.

Can you predict exchange rates?

Exchange rate predictions are hard, given the fact that there are many professional aspects you need to understand and evaluate beforehand. Exchange rate forecasts should include both sides of the coin for the two currencies in the currency pair. They should also include the fundamental analysis, with economic news, central bank forecasts, politics and the broader market sentiment, as well as the technical analysis.

What are currency pairs?

A forex pair is a pair of two currencies, quoted against each other. They are usually presented in the abbreviated form of EUR/USD 1.13, for instance, for Euros Vs US Dollars. Usually, the second currency is presented as the exchange value of the first currency, meaning that to buy one US Dollar you will need EUR 1.13. Many people utilize the fluctuation/volatility to trade forex pairs in the forex market through retail brokers, aiming to make a profit from the fluctuating exchange rates.

What determines the value of a currency?

In the case of a fixed/pegged currency, the government of a country may, as is the case with China, determine the currency value through the central bank, while in other cases, like in Switzerland, it is the central bank (SNB) itself that pegs the currency to another currency or a basket of currencies, in relation to the trade volume with that country. The currency price for floating currencies is determined by market forces, such as supply and demand. These forces are heavily affected by the economic forecasts of a country, central bank activities, rhetoric and forecasts, politics, market sentiment etc., while technical factors determine whether that currency is overvalued or undervalued.

Cryptocurrencies

Due to the tremendous global interest in crypto's and how to trade the different cryptocurrencies (including bitcoin, Ethereum, Litecoin, Dash, Ripple, etc.), FX Leaders' analysts bring you all the information you need to trade and invest in cryptocurrencies profitably. Find out more about the unique and powerful asset class that has emerged from practically nowhere to become one of the hottest investment topics of the 21st century - cryptocurrencies! More

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How Likely Is Bitcoin to Hit $100K over the Weekend?

By Timothy St. John, Financial Writer - European & US Desks

Friday, May 2, 2025

2 mins read

Bitcoin looks to have stalled out around $97K and may struggle to hit $100K this weekend, but there still could be hope.

9 h

Bitcoin Nears $97K: A New Era of Strategic Accumulation

By Sophia Cruz, Financial Writer - Asian & European Desks

Friday, May 2, 2025

1 mins read

Bitcoin has surged to nearly $97,000, driven by a blend of macroeconomic optimism and a deepening institutional strategy.

11 h

Ethereum Faces $1.26B Options Expiry: A Sign of Maturity in a Volatile Market

By Sophia Cruz, Financial Writer - Asian & European Desks

Friday, May 2, 2025

1 mins read

As $1.26 billion worth of Ethereum options expired today, the market’s focus wasn’t just on price—it was on positioning.

11 h

Bitcoin Price Prediction: BTC Rally Targets $105K After $97K Surge

By Maham Arslan, Crypto News Writer | Blockchain & Web3 Reporter

Friday, May 2, 2025

2 mins read

Bitcoin Price Prediction: BTC Rally Targets $105K After $97K Surge

Bitcoin's price surge to $97,000 boosts optimism. Analysts forecast a rise to $105,000, driven by ETF filings, institutional inflows, and bu

13 h

Metaplanet Raises ¥3.6B to Chase 10K BTC by 2025

By Arslan Butt, Index & Commodity Analyst

Friday, May 2, 2025

2 mins read

Metaplanet, a Tokyo-based tech investment firm, has raised ¥3.6 billion (approximately $23 million USD)...

13 h

Sui Eyes All-Time High As Institutional Interest Surges With 21Shares ETF Filing

By Arslan Butt, Index & Commodity Analyst

Friday, May 2, 2025

3 mins read

Sui Eyes All-Time High As Institutional Interest Surges With 21Shares ETF Filing

Despite a minor 1% drop in the past 24 hours, Sui (SUI) is displaying strong bullish momentum and hovering above $3.40. Among a flurry of

15 h

Solana’s V-Shaped Recovery Targets $250 as Network Activity Surges

By Arslan Butt, Index & Commodity Analyst

Friday, May 2, 2025

3 mins read

Solana's V-Shaped Recovery Targets $250 as Network Activity Surges

After a notable 8% increase on May 1st, Solana (SOL) is trading about the $150 mark and consolidating recent gains. Complementing optimistic

16 h

Ethereum Bulls support ETH on $1.8K path

By Olumide Adesina, Financial Market Writer

Friday, May 2, 2025

1 mins read

Ether is approaching its upper consolidation boundary at $1.85K.

16 h

Short term Bitcoin Whales Swim in Money

By Olumide Adesina, Financial Market Writer

Friday, May 2, 2025

1 mins read

JA Maartunn, an analyst at CryptoQuant, highlighted that whales have recovered to their $90.8K break-even point

Bitcoin

17 h

Ripple: MasterCard Calls XRP a Bridge

By Olumide Adesina, Financial Market Writer

Friday, May 2, 2025

1 mins read

Financial institutions identify XRP as a bridge currency for cross-border payments.

17 h

Dogecoin Poised for Potential $1.42 Price Target as Whales Accumulate 100M DOGE

By Arslan Butt, Index & Commodity Analyst

Friday, May 2, 2025

3 mins read

Dogecoin Poised for Potential $1.42 Price Target as Whales Accumulate 100M DOGE

Currently trading $0.18, Dogecoin (DOGE) has risen over 4% in the previous 24 hours as optimistic attitude develops following notable whale

17 h

Bitcoin Approaches $100K Amid Institutional Buying Surge and Trade War Concerns

By Arslan Butt, Index & Commodity Analyst

Friday, May 2, 2025

3 mins read

Bitcoin Approaches $100K Amid Institutional Buying Surge and Trade War Concerns

Bitcoin holds strong at $97,000 as institutional demand accelerates while retail investors face potential pricing-out. BTC/USD's ability to

20 h

Daily Crypto Signals: Bitcoin Breaks $97K While Solana Surges

By Arslan Butt, Index & Commodity Analyst

Friday, May 2, 2025

4 mins read

Daily Crypto Signals: Bitcoin Breaks $97K While Solana Surges

Bitcoin has surged to nearly $97,000 as Solana posts an impressive 8% daily gain to $152, with both cryptocurrencies showing strong

21 h

Bitcoin Surging Again; How Soon to $100K?

By Timothy St. John, Financial Writer - European & US Desks

Thursday, May 1, 2025

2 mins read

Bitcoin could be passing $100K very soon.

Bitcoin is likely to achieve a level of $100,000 as soon as this week, if its current bullish trend continues.

1 d

Ethereum’s 2025 Vision: Vitalik Buterin Charts a Decentralized Future

By Sophia Cruz, Financial Writer - Asian & European Desks

Thursday, May 1, 2025

2 mins read

Vitalik Buterin, co-founder of Ethereum, has discussed his outlook for the network's future

1 d

Roswell Breaks Ground: First U.S. City to Adopt Bitcoin as a Reserve Asset

By Sophia Cruz, Financial Writer - Asian & European Desks

Thursday, May 1, 2025

2 mins read

In a landmark move signaling the growing institutional acceptance of Bitcoin, Roswell, New Mexico

1 d

Ethena’s USDe Integration with TON Brings Dollar-Pegged Savings to One Billion Telegram Users

By Arslan Butt, Index & Commodity Analyst

Thursday, May 1, 2025

2 mins read

Ethena's USDe Integration with TON Brings Dollar-Pegged Savings to One Billion Telegram Users

Ethena Labs has strategic partnered with The Open Network (TON) to offer its synthetic stablecoins straight to Telegram's one billion users

1 d

Ethereum Price Prediction: $2K Move Coming on $42B Derivatives Spike

By Arslan Butt, Index & Commodity Analyst

Thursday, May 1, 2025

1 mins read

Ethereum (ETH) has taken back the $1,800 handle, now trading at $1,837 as it tests the $1,854 resistance zone for the third time.

1 d

XRP Price Prediction: Can Salary Plan Push XRP to $5?

By Maham Arslan, Crypto News Writer | Blockchain & Web3 Reporter

Thursday, May 1, 2025

1 mins read

XRP Price Prediction: Can Salary Plan Push XRP to $5?

XRP rallies above $2.30 as Ripple’s real-time salary proposal gains attention. Could this real-world use case drive XRP toward $5?

1 d

WLD Price Targets $1.22 as Worldcoin Expands to 6 Major US Cities

By Arslan Butt, Index & Commodity Analyst

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2 mins read

WLD is up 19% this week as investor interest surges with ecosystem developments. After a 4.5% intraday dip to $1.03 yesterday...

2 d

MORE NEWS

Cryptocurrencies

How Likely Is Bitcoin to Hit $100K over the Weekend?

Bitcoin Nears $97K: A New Era of Strategic Accumulation

Ethereum Faces $1.26B Options Expiry: A Sign of Maturity in a Volatile Market

Bitcoin Price Prediction: BTC Rally Targets $105K After $97K Surge

Metaplanet Raises ¥3.6B to Chase 10K BTC by 2025

Sui Eyes All-Time High As Institutional Interest Surges With 21Shares ETF Filing

Solana’s V-Shaped Recovery Targets $250 as Network Activity Surges

Ethereum Bulls support ETH on $1.8K path

Short term Bitcoin Whales Swim in Money

Ripple: MasterCard Calls XRP a Bridge

Dogecoin Poised for Potential $1.42 Price Target as Whales Accumulate 100M DOGE

Bitcoin Approaches $100K Amid Institutional Buying Surge and Trade War Concerns

Daily Crypto Signals: Bitcoin Breaks $97K While Solana Surges

Bitcoin Surging Again; How Soon to $100K?

Ethereum’s 2025 Vision: Vitalik Buterin Charts a Decentralized Future

Roswell Breaks Ground: First U.S. City to Adopt Bitcoin as a Reserve Asset

Ethena’s USDe Integration with TON Brings Dollar-Pegged Savings to One Billion Telegram Users

Ethereum Price Prediction: $2K Move Coming on $42B Derivatives Spike

XRP Price Prediction: Can Salary Plan Push XRP to $5?

WLD Price Targets $1.22 as Worldcoin Expands to 6 Major US Cities

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