How to Check for Live International Exchange Rates

The international exchange rates fluctuate every second. This happens because of inflation all over the world and the difference in interest rates

Live exchange rates are an essential tool to forex traders because they help them make fast financial decisions. It is also beneficial to people sending money overseas. Most banks also use these rates, but with a margin. 

Live Exchange Rates and Reasons for Fluctuation

A live exchange rate is a currency exchange rate that changes in real-time and with small margins. The change can be a drop or a rise in the exchange rates, and the main reason for the change in these rates is world inflation

Varying interest rates in different countries also influence the fluctuation of exchange rates. The other factors affecting the rate change are export and import levels and the political atmosphere of countries, and these factors are explained below. 

Factors Influencing Exchange Rate Fluctuation

• Supply and Demand

When the demand for goods and services is low with a high currency circulation, the exchange rate is low. The opposite is true when there is high demand with less circulation of currency.

• Inflation

Inflation is determined by the rate at which the prices of goods and services increase in the market. The low inflation rate of a country’s currency translates to a high currency value, hence a high exchange rate.

A country with high inflation has an unstable economy, and the currency is also of lower value, which leads to low exchange rates. 

• Interest Rates

Banks charge interest rates on every amount borrowed, and high-interest rates translate to high exchange rates. When the interest rates are lower, the banks charge less, and the exchange rates are lower. 

• Consumer Confidence

A country with low unemployment has a stable economy. The citizens have money to invest, and they are free to spend. This increases the value of the country’s currency, leading to high exchange rates.

A country with high unemployment has a less stable economy, and consumers are unwilling to invest because they don’t have the money. The country’s currency is also of lower value, and investors are reluctant to invest. This leads to low exchange rates. 

• Political Stability

A peaceful country attracts investors. The citizens are also likely to buy more and invest more because of the economic growth. This leads to more increase in the value of the currency hence higher exchange rates.

On the other hand, political unrest in a country causes fear for investors and citizens to spend. It also reduces the country’s outside revenue like tourism and exports. This results in a decrease in the value of the currency, translating to low exchange rates. 

• Public Debt

Most countries take loans from the World Bank to finance their economies. Sometimes, the economy might not grow to the expected level, and this can lead to inflation. Inflation discourages investors from investing in the country.

Also, when the prices of commodities rise, citizens are less likely to invest, which leads to low economic growth. This results in a drop in the currency value and a low exchange rate. Also, some governments print money to pay off the debts, leading to inflation. 

How Long Does a Live Exchange Rate Last?

Live exchange rates are constantly changing, and they take milliseconds to do so. However, some can last for a minute or so. Consumers are directly affected by the exchange rates of the company or banks they use to transfer money. 

An advantage of using a money transfer service with live exchange rates is choosing the best time to transact. A currency converter is another excellent way to monitor the live-changing rates. 

Benefits Of Real-Time Exchange Rates To Businesses

The international foreign exchange rates are very beneficial to companies because they determine the organizations’ financial decisions. Here are the other benefits: 

• Knowledge 

Businesses are highly affected by exchange rates. A businessperson will benefit from knowing or being able to predict how the exchange rates will look in the future. This helps the business people make better decisions regarding when to carry out foreign exchange transactions. 

• Decision Making

Forex exchange companies need to know the real-time exchange rates because they make crucial and instant financial choices. Understanding how the rates are changing enables them to make sound decisions.

• Increased Savings

A company aware of hourly exchange rate fluctuations makes more profits and negligible losses. Therefore, the company can save more money.

Businesses are advised to choose the safest, fastest, and most reliable live exchange platforms to avoid incurring losses. 

How To Check Live International Exchange Rates

To check live international exchange rates, you need to refer to reliable resources. Here are some of the platforms to find live international exchange rates.

CNBC Currency Exchange Rates

CNBC is among the leading business and financial news networks worldwide. It provides the latest business and financial news, including live currency exchange rates.

You can access the exchange rates for major currency pairs, including USD/CAD, EUR/USD, GBP/USD, AUD/USD, and many others. Also, the currency exchange rates for currency pairs in the Americas, Asia-Pacific, and Europe are available.

Federal Reserve Bank

If you are looking for the exchange rate for the U.S. dollar against other currencies worldwide, consider visiting the Federal Reserve Bank’s website.

The Federal Reserve Bank provides the foreign exchange rates in currency units per U.S. dollar. For example, you’ll find the exchange rates for the U.S. dollar against the Canadian dollar, Brazilian real, Chinese yuan, Japanese yen, and Sterling pound.

Bloomberg Currency Exchange Rates

Bloomberg is another business and financial news website that provides international exchange rates to help investors make informed investment decisions.

The best thing about Bloomberg is that it offers live exchange rates for major currency pairs, including USD/CAD, GBP/USD, and EUR/USD. However, the currency rates represent the indicative rates only provided by the market participants.

Google Finance Currency Exchange Rates

Google Finance is an excellent exchange rates tool. It provides a vast range of financial information, including stock information, historical stock prices, and live exchange rates.

Like other currency exchange resources, Google Finance also offers live international exchange rates for major currency pairs like USD/CAD, GBP/USD, USD/JPY, EUR/USD, and AUD/USD. You can quickly track exchange rate fluctuations.

Final Words: International Exchange Rates 

Exchange rates help you to make decisions for international business or choose the best time to transfer money. Failure to keep up with the live exchange currencies can lead to losses.