What Is SGX-Nifty Currency Converter?
The Currency Converter on SGX-nifty lets users see the most up-to-date exchange rates and change between major world currencies. The tool is based on reliable market data sources to make sure they are correct. This service makes it easy and safe to find out about changes in foreign exchange rates.
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How To Use SGX-Nifty Currency Converter?
Using SGX-Nifty currency converter is quite easy! Open the tool from the tools category, and follow below mentioned simple steps;
- In the first bar, enter the amount you wish to calculate.
- Then choose the currency type from which you want to covert.
- Finally, choose the desired currency type in which you want to convert.
And that’s it! You can see the coverted amount in the result section. By the way, we also have uploaded SIP calculator. If you are a SIP investor or simply want to explore about SIP, click here!
Imp. Terms Related To Foreign Currency Exchange
There are a few important things you should know about when you exchange foreign currency:
- The exchange rate shows how much one currency is worth in terms of another. The exchange rate between the US dollar and the Euro, for instance, is 1.2. This means that one US dollar is equal to 1.2 Euros.
- Forex, which stands for “foreign exchange market,” is a free global market where people can buy and sell currencies. Because it is the world’s biggest market, it makes it easy for buyers and sellers to trade currencies.
- Bid Price: The amount of money that a buyer is ready to pay for a currency.
- Ask Price: The amount of money a seller is ready to give you in exchange for.
- The bid-ask spread is the gap between the prices that are being bid and asked. It’s how much money currency buyers can make, and it’s a big part of how much it costs to trade currencies.
- The pip is the smallest unit of value in a set of currencies. One example of a pip change is when the EUR/USD pair goes from 1.2800 to 1.2803.
- A currency pair is a pair of currencies that are bought and sold on the foreign exchange market. The base currency is the first currency in the pair. The quote currency is the second currency.
- Interbank Rate: The rate at which banks trade currencies with each other on a large scale. It’s often used to compare other exchange rates to.
There are six major currencies in the world: the US dollar (USD), the Euro (EUR), the Japanese yen (JPY), the British pound (GBP), the Australian dollar (AUD), the Canadian dollar (CAD), and the Swiss franc (CHF). These currencies are part of what are called “major currency pairs.“
These terms are important to know if you want to trade currencies or do business with other countries.
Understanding Forex Exchange Rate & Forex Quotes
Different countries’ currencies don’t always have the same value, which is why there are exchange rates to make buying currencies easier. These exchange rates show how much one currency is worth in terms of another. They are set by the foreign exchange market (forex), which is where most currency exchanges happen. Every day, deals worth trillions of dollars happen on the forex, which is a decentralized global market where currencies are bought and sold. The exchange rate changes every second on this market, which moves very quickly.
When people trade foreign exchange, they usually exchange big currencies like the U.S. dollar, the euro, the yen, and the British pound sterling. The base currency and the quote currency, which is also called the counter currency, are always part of a forex rate. In this case, EUR/USD 1.366 is the price, and EUR is the base currency. USD is the quote currency. With this exchange rate, one euro is equal to $1.36 USD.
There are usually two prices shown when you buy foreign currency. These are the buying rate and the selling rate, which are also called the bid price and the ask price. The selling rate is the price at which you can buy a currency. It is generally higher than the buying rate because banks and currency brokers add a markup to the buying rate.
Factors That Influence Exchange Rates B/w Currencies
International currency exchange is a highly volatile field where many things can change exchange rates and the value of currencies around the world. Though our currency converter is based on real time inputs so you can rely on it! Still, these are some important drivers you should know:
- Inflation Differences: Currencies from countries with low inflation tend to gain value, which means that people can buy more with them. On the other hand, currencies from countries with higher inflation rates tend to lose value compared to other currencies.
- Interest Rate Changes: Changes in interest rates affect the desire for and price of currencies, which causes exchange rates to go up and down.
- Trade imbalances: A country is in a deficit when it imports more than it exports. This means that it needs more foreign currency than it brings in through exports. The value of its currency may go down.
- Political Climate: Stability and government policies have a big effect on exchange rates. Economies with stable governments are seen as safer places to spend, which brings in foreign money and makes their currency stronger.
- The worth of a country’s currency is affected by how well its economy is doing as a whole. Strong countries bring in money from around the world, which makes their currency more valuable.
These factors show how complicatedly they affect each other to set the value of currencies on the world market.
Traveling Abroad? Keep In Mind These Tips!
People who want to visit places with different currencies should do a lot of study before their trip. Depending on where you’re going, it may be better to exchange money abroad or at home. However, it’s usually best to exchange money at the home country before leaving.
There are several benefits to exchanging money at the home country. For starters, travelers don’t have to hurry, so they can carefully think about their choices. Second, it gets rid of the chance of having trouble exchanging money in a place you don’t know well where the language difference could be a problem.
In the US, some banks and credit unions offer swap services that are better than other options because they charge less and offer better rates. Tourists can also order foreign cash from some websites, which will send it to them by mail. It’s important to keep in mind, though, that foreign airports often have the worst exchange rates and most expensive fees.
A lot of people choose the easiest place to buy cash while they are traveling, like an airport kiosk, a hotel, or a tourist area. These places often take advantage of tourists who are in a hurry and don’t have time to look for better deals. To get better rates, you should instead look for your bank’s branches or ATMs abroad. You could also use a local bank or an ATM that doesn’t charge fees.
When traveling, places that accept credit cards can make things easier because tourists don’t have to carry around a lot of foreign cash or pay big fees. The exchange rates for credit cards and debit cards are often very close to the rates on the trade market. Cards are also better than carrying cash, though it’s important to know that cards that aren’t designed for travel may charge fees for using them in other countries.
For many people, coming back from a trip abroad means having extra foreign cash. You can sell it back to a bank or broker, but it’s not very useful other than as a memory. Most of the time, selling back to banks or credit unions gets you better rates and lower fees.
Most FAQs
Which currencies can I convert with the Currency Converter?
We have 212 currencies which are being used in the new currency converter.
What is the interbank rate and should I use it?
Also known as the mid-market rate, the spot rate or the real exchange rate, the interbank rate is the exchange rate used by banks and large institutions when trading large volumes of foreign currency with one another. It is not made for individuals and smaller businesses, as smaller money transfers tend to attract a higher mark-up, so that the exchange offering the service can make a profit.
Why do currency conversion rates differ between companies?
Currency conversion rates differ between companies as each company manipulates the interbank rate to make a profit. This is usually done on volume; the higher the volume, the closer you get to the interbank rate. We come across a lot of competitors that post interbank rates online as a bait to hook new customers, but, once customers are onboard, they change the rate drastically, not usually in the customers’ favour.
What is the best time to exchange my money or to buy or sell currencies?
Most trading happens in the UK and US market, so 8am GMT to 5pm EST, is when the market is most liquid and the difference between the bid and ask rates is minimal. Once you operate outside these hours, you can’t cover your deal with large institutions and have to pay the rate as an insurance against fluctuations from the time you book to offsetting with a partner.