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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Monero (XMR) Explodes Over 24% Towards $300, Fueled by Speculation and Technical Breakout

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Monday, Apr 28, 2025

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Monero (XMR) Explodes Over 24% Towards $300, Fueled by Speculation and Technical Breakout

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Bitcoin Holds Strong Above $93,000: Record Institutional Inflows and Bullish Long-Term Forecasts Drive Momentum

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8 h

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By Roy Levine, Professional Crypto Day-Trader, Market Analyst, and Trading Mentor

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17 h

XRP Price Prediction: $2.18 Support Strong After ETF Launch

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XRP Price Prediction: $2.18 Support Strong After ETF Launch

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23 h

$5.3B Bitcoin Gains—MicroStrategy and Metaplanet Win Big

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$5.3B Bitcoin Gains—MicroStrategy and Metaplanet Win Big

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24 h

Ethereum Price Prediction Heats Up—$1,858 in Sight After 30% Gain

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Sunday, Apr 27, 2025

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Ethereum Price Prediction Heats Up—$1,858 in Sight After 30% Gain

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1 d

Bitcoin 40% Undervalued: $3B Institutional Surge Hints at $100K Breakout

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Bitcoin 40% Undervalued: $3B Institutional Surge Hints at $100K Breakout

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1 d

BlackRock: China might dump U.S. Treasuries for Bitcoin, Gold

By Olumide Adesina, Financial Market Writer

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1 mins read

He emphasized the continuous development of a trend where countries shift from holding reserves in US dollars to gold and bitcoin.

1 d

Hashdex introduced XRP ETF in Brazil, Boost Ripple’s Adoption

By Olumide Adesina, Financial Market Writer

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1 mins read

Hashdex introduced XRP ETF in Brazil, Securing Regulated XRP Access for Investors.

1 d

Stripe building Stablecoin to Challenge USDT, USDC, RLUSD

By Olumide Adesina, Financial Market Writer

Saturday, Apr 26, 2025

1 mins read

Stripe is now developing a new stablecoin product based on the US dollar, targeting businesses outside the US, UK, and Europe

2 d

XRP Price Prediction: $2.20 Holds After Ripple’s $1.25B Move

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

Saturday, Apr 26, 2025

2 mins read

XRP Price Prediction: $2.20 Holds After Ripple’s $1.25B Move

XRP price steadies at $2.20 as Ripple’s $1.25B Hidden Road acquisition nears approval, boosting XRP Ledger's institutional use case.

2 d

Pi Coin Price Prediction Heats Up After Binance Vote Surge

By Arslan Butt, Index & Commodity Analyst

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2 mins read

Binance, the world’s largest crypto exchange by trading volume, has introduced a revamped token listing framework—offering renewed...

2 d

DeFi Development Corp’s $1B Move Signals Bullish Solana Price Outlook

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In a big move, DeFi Development Corp. (formerly Janover Inc.) has filed a $1 billion shelf offering with the U.S. Securities and Exchange...

2 d

BlackRock not Buying into Ripple’s XRP

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1 mins read

Market participants do not expect to see much activity from BlackRock with XRP ETFs

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1 mins read

DOGE is looking bullish but the next big move will depend on holding the trendline at $0.178 and reclaiming $0.185.

3 d

Big Bet on Solana (SOL)—$500M Funding Fuels Staking Push

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Canadian-listed SOL Strategies has secured a $500 million convertible note facility from New York-based ATW Partners...

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MORE NEWS

Cryptocurrencies

Monero (XMR) Explodes Over 24% Towards $300, Fueled by Speculation and Technical Breakout

Pi Network Price Eyes $5 Despite $0.60 Retest After Key Support Break

XRP Set to Run Faster Than Light with ProShares XRP ETF

Ethereum Stabilizes Above $1,700: Gas Limit Expansion Proposal Aims for 100x Scalability Boost

Bitcoin Holds Strong Above $93,000: Record Institutional Inflows and Bullish Long-Term Forecasts Drive Momentum

Daily Crypto Signals: Bitcoin Pushes Towards $95K as Institutional Inflows Surge, Ethereum Debates Bottom

Bitcoin (BTC) – Bears Still Eye $73,500 As Price Faces A Wall Of Resistance

XRP Price Prediction: $2.18 Support Strong After ETF Launch

$5.3B Bitcoin Gains—MicroStrategy and Metaplanet Win Big

Ethereum Price Prediction Heats Up—$1,858 in Sight After 30% Gain

Bitcoin 40% Undervalued: $3B Institutional Surge Hints at $100K Breakout

BlackRock: China might dump U.S. Treasuries for Bitcoin, Gold

Hashdex introduced XRP ETF in Brazil, Boost Ripple’s Adoption

Stripe building Stablecoin to Challenge USDT, USDC, RLUSD

XRP Price Prediction: $2.20 Holds After Ripple’s $1.25B Move

Pi Coin Price Prediction Heats Up After Binance Vote Surge

DeFi Development Corp’s $1B Move Signals Bullish Solana Price Outlook

BlackRock not Buying into Ripple’s XRP

Dogecoin Price Prediction Eyes $1—But Can $0.185 Hold?

Big Bet on Solana (SOL)—$500M Funding Fuels Staking Push

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