Currencies from across the globe are hitting all-time highs/lows almost every day. With exchange rates fluctuating constantly, international businesses professionals are facing huge technical difficulties. The wrong, malfunctioning currency converter can ruin your plans – whether you’re an international trader or a frequent traveler.
Using currency converters that provide real-time, data-based results is critical. But why does real-time data matter so much when you’re converting currencies? Why do almost all currencies across the globe fluctuate so often? The answer is rather straightforward – supply and demand.
How Supply and Demand on the Foreign Exchange Market Impacts Your Ability to Convert Currencies
Currency supply and demand is driven by various factors such as –
- International tourism
- International trade
- Mergers, acquisitions, and other major business deals between two or more nations
- Market speculation
- Geopolitical risks
Let’s say your company in India sells products to a company in the UK. The UK-based company will have to convert its “British Pounds” into “Rupees” to pay for your goods. The flow of British Pounds into Rupees will indicate the global demand for the Indian Rupee.
If this currency flow leads to a net increase in demand for the Indian rupee, the currency’s value will increase. This increase will happen in real-time because currencies are traded 24 hours per day.
The demand or lack thereof for particular currencies depends on several interconnected factors such as –
- The monetary policies of different countries
- The inflation rates of a country
- The country’s economic status (e.g., GDP, unemployment rates, trade deficits, etc.)
- Political conditions (e.g., countries in the middle of political tensions have less desirable currencies for international traders)
A host of factors will impact your ability to convert currencies with 100% accuracy. The more time-sensitive data you have, the more accurate your conversions. The more accurate your currency conversions, the more you can make of the currency fluctuations. That’s where a universal currency converter can be of immense help.
What are Universal Currency Converters?
Universal currency converters are software tools that quickly convert the values of different currencies using real-time data. You can find these tools online. The best currency converters use data from the most up-to-date currency exchange rates. That means the values of currencies on these converters change every ten to minutes.
Top forex traders use these online, real-time currency converters. If you need to convert currencies, you should always use these advanced currency conversion tools. Make sure your conversion tool –
- Collects data from multiple currency exchange platforms and FOREX markets. Tools that collect currency-related data from only one currency exchange may not provide accurate data.
- Make sure your currency conversion tool provides updated results every 10 to 20 minutes.
- Select currency conversion tools that support the most number of currencies. The best tools offer conversions on currencies of up to 150+ countries.
Involved in international transactions? Use the latest currency conversion tools to determine which currency exchangers are offering the lowest fees. Investors, traders, and travelers can benefit a lot from the real-time data these tools provide. On the other hand, using out-of-date currency conversion tools may lead to financial losses.