Convert between 16 major world currencies with reference exchange rates. Includes bid/ask explanation, PPP context, and forex fundamentals.
$1,000.00 USD =
KRW
1 USD =
1320.0000 KRW
1 KRW =
0.000758 USD
Reference rates for educational purposes. Not real-time market rates.
An exchange rate is the price of one currency in terms of another. When you see EUR/USD = 1.08, it means 1 Euro costs $1.08. The forex market trades over $7.5 trillion daily, making it the world's largest financial market. Rates are determined by supply and demand, influenced by interest rates, inflation, trade balances, and geopolitical events. Central banks like the Federal Reserve and ECB set benchmark rates that ripple through the entire system.
Real exchange rates always come in pairs: the bid (what buyers will pay) and the ask (what sellers demand). The difference is the spread— the profit margin for the broker or bank. Major pairs like EUR/USD have tight spreads (~0.01%), while exotic pairs like USD/THB can have spreads of 0.5% or more. Airport currency exchanges typically charge 3-8% spreads. This tool shows mid-market rates without any spread, giving you the true reference rate.
Major pairs involve USD and account for 85% of forex volume: EUR/USD, USD/JPY, GBP/USD, USD/CHF. Minor pairs (crosses) exclude USD: EUR/GBP, EUR/JPY, GBP/JPY. Exotic pairs pair a major currency with an emerging market one: USD/BRL, EUR/TRY, USD/THB. Exotic pairs have wider spreads and higher volatility. This tool includes 16 currencies covering major, minor, and popular exotic currencies.
Exchange rates do not reflect purchasing power. The Big Mac Index by The Economist compares the price of a Big Mac globally to measure PPP. In 2024, a Big Mac costs $5.69 in the US but only $2.29 in India (at market exchange rates), suggesting the rupee is “undervalued” by 60% relative to PPP. This matters for international salary comparisons, cost-of-living estimates, and understanding why $100,000 buys very different lifestyles in Zurich vs. Bangkok.
No. This tool uses fixed reference rates for educational and estimation purposes. Real exchange rates fluctuate continuously during market hours (24/5 for forex). For actual transactions, use your bank or a service like Wise, Revolut, or XE for current market rates.
Online rates show the mid-market rate (the midpoint between bid and ask). Banks and money transfer services add a markup (spread) as their profit. A typical bank charges 2-3% over mid-market. Services like Wise offer rates much closer to mid-market with transparent fees. Always compare the total cost (rate + fees) rather than just the headline rate.
The three biggest drivers are: (1) interest rate differentials — higher rates attract foreign capital, strengthening the currency; (2) inflation expectations — higher inflation weakens a currency; (3) political stability and economic outlook. Central bank announcements (Fed, ECB, BOJ) routinely move major pairs by 1-2% within minutes.