Compare foreign exchange rates December 2018 | finder.com
Linear and bar graphs with blue background

Foreign Exchange Rates

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Foreign exchange rates are one of the top factors you should consider when transferring money overseas.

The exchange rate determines how much one country’s currency is worth in another currency. When a country’s currency is strong, it will yield more money when exchanging it in a country with a weak currency. For example, in December 2016, the U.S dollar was worth approximately 19 Mexican pesos. However, most countries’ exchange rates are flexible, which means it can change from moment to moment. Factors that influence the exchange rate include interest rates, economic stability and inflation.

Get the latest foreign exchange rates

Enter in the amount you want to transfer overseas and the currency you wish your money to be converted to, and we’ll give you the amount you’d receive using the real time interbank rates.

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
USD 0 3 - 5 days USD 0.00 0.877 EUR 4,384 Transfer up to $500,000 with no minimums and no fees. Go to site Show details
USD 1,000 1 day USD 0.00 0.876 EUR 4,382 No maximum limit, no fees and competitive exchange rates for 100+ currencies. Go to site Show details
USD 1 1 - 2 days USD 7.00 0.877 EUR
4,380
Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details
USD 1 Within an hour USD 3.99 0.875 EUR 4,374 Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.
Go to site Show details
1 - 2 days USD 0.00 0.875 EUR 4,373 Get live quotes on exchange rates and take advantage of no transaction fees with no limits on transfers. Go to site Show details
1 - 2 days - - RemitMoney specializes in transfers to India, offering 24/7 customer support and easy tracking. Show details

Compare up to 4 providers

How are rates calculated?

Exchange rates are calculated based on the currency values of the two currencies being exchanged. Take an example of the U.S. dollar and the Australian dollar. If 1 USD equals 1.03265 AUD, this means you will receive 1.03265 Australian dollars for every 1 U.S. dollar.

The same will apply if you want to know how many U.S. dollars you can purchase with 1 Australian dollar. With an exchange of 1 AUD = 0.769 USD, you will get 0.769 US dollars in exchange for 1 Australian dollar.

With these examples, if you transfer 100 Australian dollars to the U.S., the recipient will receive $76.90 USD (100 x .769). And when transferring 100 U.S. dollars to Australia, your recipient will receive $103.26 AUD (100 x 1.03265).

Refreshing in: 60s | Sat, 15 Dec 09:23pm GMT
USD AUD CAD EUR CNY GBP INR MXN PHP
1 USD = 1.0000 1.3930 Inverse: 0.7179 1.3384 Inverse: 0.7472 0.884291 Inverse: 1.1309 6.9076 Inverse: 0.1448 0.794345 Inverse: 1.2589 71.964 Inverse: 0.0139 20.2384 Inverse: 0.0494 53.063066 Inverse: 0.0188
1 AUD = 0.7179 Inverse: 1.3930 1.0000 0.9608 Inverse: 1.0408 0.6348 Inverse: 1.5752 4.9590 Inverse: 0.2017 0.5703 Inverse: 1.7536 51.6630 Inverse: 0.0194 14.5292 Inverse: 0.0688 38.0940 Inverse: 0.0263
1 EUR = 1.1309 Inverse: 0.8843 1.5752 Inverse: 0.6348 1.5135 Inverse: 0.6607 1.0000 7.8115 Inverse: 0.1280 0.898285 Inverse: 1.1132 81.380488 Inverse: 0.0123 22.8866 Inverse: 0.0437 60.0064 Inverse: 0.0167
1 GBP = 1.2589 Inverse: 0.7943 1.7536 Inverse: 0.5703 1.6848 Inverse: 0.5935 1.1132 Inverse: 0.8983 8.6960 Inverse: 0.1150 1.0000 90.595396 Inverse: 0.0110 25.4781 Inverse: 0.0392 66.8010 Inverse: 0.0150

It is crucial to note that exchange rates can rise and fall. If a currency increases in value then it is said to have strengthened. It means that the currency will be exchanged for more against another currency. For example, if 1 AUD was being exchanged for 0.92021 USD in July and it changes to 0.9381 USD in October, then the Australian dollar is said to have strengthened against the U.S. dollar.

If a currency falls in value then it said to have weakened, meaning it will be exchanged for less against another currency. For example, if 1 AUD was being exchanged for 0.9381 USD in October and changes to 0.92021 USD in November, then the Australian dollar is said to have weakened against the U.S. dollar.

Know your values

Knowing the value of your currency in relation to foreign currencies will help you analyze investments priced in foreign currencies. For instance, for an American investor, knowing the AUD to USD relation is important if he or she was looking to buy property in Australia. The exchange rate is also useful to know for other reasons:

  • If you’re planning on traveling, knowing the exchange rate shows you your purchasing power so that you can know in advance what you can purchase with a certain amount of money when you travel to a foreign country. This will help you to budget for your trip.
  • Foreign exchange rates will help you decide whether to go for local products or imports from other countries. If the exchange rates from your trading partner countries are favorable then you may consider importing products if the overall cost will be lower than when you buy locally produced products. On the other hand, they will also assist you in deciding which countries to export to.
  • If you regularly send money overseas — for example, to your family — you’ll want to know what the exchange rate is so you know how much money is actually reaching your destination. This is especially important if you’re making a payment overseas.

Why is the exchange rate I get lower than what I see on the news?

The rate you receive is lower because the rates you see on the evening news or on a business news website is the “interbank rate'” This is a rate used between banks when they buy and sell currency among themselves. The rate you receive will have a margin built into it or other fees, which makes it less competitive than the interbank rate. As a consumer, the rate you get will also depend on where you exchange your money. Providers like banks, currency exchange kiosks and PayPal traditionally offer poorer exchange rates when compared to currency exchange services like OFX and TorFx. Ensure you compare rates thoroughly before carrying out an exchange.

Where can I find the best exchange rates?

When transferring funds internationally or exchanging currency for a trip overseas, you definitely want to get the best exchange rate so as to get the most bang for your buck. The following are some of the ways you can get the best exchange rate possible.

  • Avoid small currency exchange kiosks you see at airports or train stations: Although such booths may be convenient, they typically charge very high fees. They take advantage of people’s need to exchange their currencies and charge highly for their convenience.
  • Use non-bank exchange services: Providers like OFX , WorldRemit and TorFX offer competitive exchange rates and low margins, therefore giving you better value. If you’re sending money overseas, these companies typically charge lower fees than traditional banks and also provide 24/7 customer support.
  • Convert cash when rates are favorable: If you know that you need to make an international transfer or you will be traveling overseas in the near future, monitor the exchange rates and exchange your cash when rates are favorable to you. Carry out your conversion at an exchange provider that charges low fees and has a competitive rate, and you’ll benefit by saving money.
  • Use a travel money card: These allow you to load money onto your card and lock in an exchange rate at the time of loading. This means you’re protected if rates drop and won’t pay any foreign transaction fees when spending in a currency you’ve loaded onto the card. Compare cards to see what exchange rates you’ll be able to receive before deciding on any one card.

How do exchange rates work?

Flexible

Exchange rates can be either flexible or fixed. Flexible exchange rates are determined by the foreign exchange market, commonly known as the forex market. Flexible exchange rates change throughout the day depending on what traders think the currency is worth and other factors. Flexible exchange rates are said to be “floating” and can fluctuate regularly due to factors listed below.

Fixed

The opposite of a flexible rate is a fixed, or pegged, rate. This is where a currency’s value is maintained against another by its government. In this case a government will set a price against a major currency like the euro, Japanese yen or U.S. dollar and then to maintain this rate they’ll need to reserve an amount of this foreign currency. Then, if demand for this currency drives the exchange rate up they’ll need to release more of this foreign currency into the market to meet the demand, and if demand is low they’ll have to do the opposite and buy this currency.

As many will quickly point out, the majority of exchange rates aren’t purely floating or purely pegged. Most pegged rate systems will rely on a floated currency as mentioned above, so they are really using a “floating peg” system. And most floating currencies are influenced by their government’s economic policies such as tax cuts.

What influences foreign exchange rates?

Exchange rates are some of the major determinants of a country’s economic performance. This is because no country is an island and each depends on foreign trade with other countries across the world to sustain its economy. For example, Australia’s economy cannot be stable without trading with the U.S., Africa, China and the U.K., among other countries. So exchange rates will affect both imports and exports, and in turn influence the balance of trade of a country. Besides demand and supply being the main determinant of foreign exchange, there are a number of underlying factors, both geopolitical and economic, that affect the exchange rate, but some of the most common include:

  • Interest rates

Interest rates charged by the central bank in a particular country will affect the currency value of that country. A country whose central bank has higher interest rates will give lenders higher returns, and this tends to attract foreign investors. As a result, the exchange rate will increase. Consequently, higher interest rates will increase the exchange rate of a country, mainly when other factors of the economy remain stable and the interest rate is the major factor to influence the economy.

For example, if the American central banking system is offering high interest rates, then investors from foreign countries such as the the U.K. and Australia are likely to be attracted to invest in the U.S. As a result of this, the exchange rates for the U.S. dollar will rise due to the increased demand.

  • Terms of trade

The terms of trade of a country are determined by the balance between exports and imports. If the prices of exports from a country rise more than those of its imports, the terms of trade of that particular country will be greatly improved. This basically means that the country’s exports are in high demand. The final results will be that the country will receive more revenue from its exports and its currency will also be in high demand, leading to an increase in the currency’s value.

The reverse will happen if the country’s export prices rise by a smaller rate than that of its imports. The demand for exports will be low and the country will be importing more than its exports. This will decrease its currency’s demand and value.

So if the U.S. is exporting more goods to foreign countries, then its currency is likely to be in high demand and exchange rates will be higher.

  • Inflation

A country with lower inflation rates will have a high currency value because its purchasing power increases in comparison with other countries. Consequently, when a country is affected by the ongoing worldwide economic crises, its inflation will definitely increase. This will reduce the country’s purchasing power, depreciate its currency exchange rates and its trading partners will perform better than it.

Countries with relatively low inflation rates such as the U.S., Canada, Germany, Japan, Switzerland and Australia normally have high purchasing power and their currency values do not depreciate much.

  • Political climate

No investor will take the risk of investing in a country that is politically unstable. Investors will look for countries with a stable political climate so that their capital is safely invested. Generally, countries with a stable political climate will have strong economic performance and will attract more investors.

Consequently, an unstable political climate will cause loss of confidence in a country’s currency and this will lower its exchange rate.

  • Public debt

A country with high public debt is likely to welcome inflation, and this may mean that the country will have to do everything possible to pay off the debt, even if it means printing money for that purpose. When this happens, the currency value of that particular country will be reduced and this will lower its exchange rate.

Consequently, a country with high public debt will lower its currency exchange rate and this will not attract foreigner investors because their investment will be at risk.

Who do exchange rates affect?

In general, fluctuating rates affect a range of stakeholders, including:

  • Travelers – When you travel overseas you may have less or more money to spend depending on the strengths or weaknesses of the currencies you’re trading.
  • Locals – If your country has a strong foreign currency you may see some imported items become cheaper while other items become more expensive.
  • Importers – If you import goods into your country you may pay more or less (depending on how the rates have fluctuated) for the same goods.
  • Exporters – If you sell goods to other countries you may pay more or less for the same goods.
  • Investors – Many trade in foreign currencies, so a drop in the value of a currency they’re trading will mean losses, while a gain will see profits.

Kelly Waggoner

Kelly Waggoner is a senior editor with finder.com. She's worked with publishers, magazines and nonprofits throughout New York City, including ghostwriting a how-to on copyediting for the Dummies series. Between projects, she toys with words, flips through style guides and fantasizes about the serial comma's world domination.

Was this content helpful to you? No  Yes

US International Money Transfers Offers

Important Information*
XE Money Transfer

Transfer up to $500,000 with no minimums and no fees.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First

No maximum limit, no fees and competitive exchange rates for 100+ currencies.

TransferWise

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

US International Money Transfers Offers

Important Information*
XE Money Transfer

Transfer up to $500,000 with no minimums and no fees.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First

No maximum limit, no fees and competitive exchange rates for 100+ currencies.

TransferWise

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

Go to site