The value of one currency in relation to another is determined by the exchange rate. Exchange rates can be: Fixed: Pegged to another currency or a basket of currencies by a country’s government or central bank. Floating: Determined by the free market through supply and demand. For example, if 1 USD = 130 JPY, this means one US dollar can be exchanged for 130 Japanese yen. These rates fluctuate constantly due to a variety of factors such as economic performance, interest rates, political stability, and inflation.

Currency Converter

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