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.

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Cryptocurrencies

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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Latest Crypto News

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KuCoin has finally obtained a Markets in Crypto-Assets (MiCA) license in Austria through its European subsidiary, KuCoin EU Exchange...

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On Sunday there was a sudden and severe decline in Bitcoin which dropped by around 5% in just three hours. The sudden drop ended Bitcoin's

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Nasdaq-listed BitMine Immersion Technologies, under the leadership of crypto strategist Tom Lee, has purchased 14,618 ETH...

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Dogecoin Breaks Below Critical Support as ETF Inflows Collapse 80%, Testing $0.15 Floor

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Solana Holds Critical $139 Support Despite First ETF Outflows and $37M Upbit Breach

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By Arslan Butt, Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Friday, Nov 28, 2025

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Ethereum Consolidates at $3,000, Institutional Activity Signals Mixed Sentiment Ahead of December Rally

Ethereum (ETH) is currently trading above $3,000, down more than 2% in the last 24 hours. This is because the world's second-largest crypto

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MORE NEWS

Cryptocurrencies

KuCoin Secures MiCA License in Austria, Expands to 29 EEA Countries

Bitcoin Falls 5% in Sudden ‘Sunday Slam’ as Liquidations Surge

Tether Drops Mega Financial Proof in S&P Showdown

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Dogecoin Holds Above $0.13: Technical Analysts Eye $1 Target if Key Support Levels Hold

Ethereum Holds Above $2,800 Despite 5% Daily Decline, Valuation Models Signal Deep Undervaluation

Bitcoin Struggles Near $87K as Whale Activity and ETF Stagnation Cloud December Outlook

Daily Crypto Signals: Bitcoin Holds Above $91K in Weekend, Ethereum Valuation Models Signal Major Upside Potential

Ripple Reigns Supreme: XRP Tops 2025 ISO 20022 Amid Fedwire Shift

21Shares XRP ETF Launches Monday as $666M Institutional Inflows Surge

XRP Falls to $2.20 Amid ETF Weakness, $4B Whale Sales Signal Risk

Crypto Fear Index Hits 28, Ending 18-Day ‘Extreme Fear’ Streak

Ripple: SWIFT’s ISO 20022 Sprint to 90% Seals XRP’s Cross-Border Domination

Rate Cut Expectations Give Bitcoin a Boost; New BTC Price Prediction

Bitcoin’s Rollercoaster: 30% Plunge from $126K Peak, Bounces to $91K

XRP Exodus: Binance Reserves Plunge 10% in 7 Weeks—HODLers Strike Back!

BitMine Buys 14,618 ETH Worth $44M, Expanding Ethereum Corporate Holdings

Dogecoin Breaks Below Critical Support as ETF Inflows Collapse 80%, Testing $0.15 Floor

Solana Holds Critical $139 Support Despite First ETF Outflows and $37M Upbit Breach

Ethereum Consolidates at $3,000, Institutional Activity Signals Mixed Sentiment Ahead of December Rally

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