How Exchange Rates Work
Currencies are always traded in pairs (e.g., USD/INR). The first currency in the pair is the base currency (e.g., USD), and the second is the quote currency (e.g., INR). The exchange rate tells you how much of the quote currency is required to buy one unit of the base currency.
For example, if the USD to INR conversion rate is 83.35, then converting $100 USD will yield exactly:
Frequently Asked Questions
Exchange rates fluctuate based on global currency market supply and demand. Factors affecting this include central bank interest rates, national inflation rates, economic growth metrics, political stability, and international trade flows.
The mid-market rate (also known as the interbank rate) is the midpoint between the buy and sell prices of two currencies on the global market. This is the fairest exchange rate possible and is the basis of our calculator conversions. Banks often markup this rate for consumer transactions.