Currency Conversion: Understanding Exchange Rates
An exchange rate tells you how much of one currency you get for one unit of another. If 1 USD = 280 PKR, then 100 dollars converts to 28,000 rupees. Rates move constantly during market hours, driven by trade, interest rates, inflation and investor sentiment.
How to use this converter
- Enter the amount and choose the currencies you're converting from and to.
- Click Get latest rate to load a current reference rate, or type the exact rate quoted by your bank or exchange.
- Use Swap to reverse the direction instantly.
Why the rate you get is different
The rate shown online is usually a mid-market or reference rate: the midpoint between buying and selling prices. Banks, card providers, money transfer services and exchange counters add a margin to that rate, and some also charge a fee. That's why entering your provider's actual rate gives a more realistic result.
Buying vs selling rates
Exchange counters display two rates: the price at which they buy a currency from you and the price at which they sell it. The gap between them is their profit. Compare the rate you'll actually receive, not just the advertised one.
Tips for freelancers and travellers
- Compare total cost: rate margin plus fixed fees, especially on small transfers.
- Avoid dynamic currency conversion when paying by card abroad; paying in the local currency is usually cheaper.
- For international clients, agree in advance which currency you'll invoice in, so exchange movements don't surprise either side.