Post by The Big Daddy C-Master on Nov 22, 2015 21:23:45 GMT -5
This is easy, say you have a dollar and you want to buy a currency and your conversion rate is 1:1, this means 1 of your dollars buys one of their currency. So let's say in theory you wanted to buy a British Pound. In this case it would be an even 1.1 exchange.
Let's say you have a stupid government who prints money to buy votes.
Let's say this cuts your value in half, in this case you'd be 2 (USD):1 (Pound), which means you need 2 dollars to buy 1 pound.
In reverse a 1 (USD): 2 (Pound) means you would need 1 dollar to buy 2 pounds.
So it's really simple. The higher the number is compared to the other currency, the weaker that currency is because you can buy more of it with one unit of your currency. I'll save the economics behind that for another time.
Here's the US vs the Australian Dollar conversion on Google.
www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=dollar+to+australian+dollar
There you'll see it tells you that 1 USD buys 1.39 AUD. So it's simple.
Here's the currencies index in the Wall Street Journal.
www.wsj.com/mdc/public/page/mdc_currencies.html?refresh=on
On this you'll see the change in the currency vs the time it was before. Ignore that for now. On the first line on the left you'll the the Australian Dollar. In this case you'll see that it is FIRST in the conversion which means the AUD is about 0.71 to the USD. Just to math and divide the 1 by 0.71 to get the conversion the other way if you want it. This is only when the foreign currency is first. Most of the time it has the USD *first* but sometimes it might not. Keep in mind your update times as they are subject to change.
Let's say you have a stupid government who prints money to buy votes.
Let's say this cuts your value in half, in this case you'd be 2 (USD):1 (Pound), which means you need 2 dollars to buy 1 pound.
In reverse a 1 (USD): 2 (Pound) means you would need 1 dollar to buy 2 pounds.
So it's really simple. The higher the number is compared to the other currency, the weaker that currency is because you can buy more of it with one unit of your currency. I'll save the economics behind that for another time.
Here's the US vs the Australian Dollar conversion on Google.
www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=dollar+to+australian+dollar
There you'll see it tells you that 1 USD buys 1.39 AUD. So it's simple.
Here's the currencies index in the Wall Street Journal.
www.wsj.com/mdc/public/page/mdc_currencies.html?refresh=on
On this you'll see the change in the currency vs the time it was before. Ignore that for now. On the first line on the left you'll the the Australian Dollar. In this case you'll see that it is FIRST in the conversion which means the AUD is about 0.71 to the USD. Just to math and divide the 1 by 0.71 to get the conversion the other way if you want it. This is only when the foreign currency is first. Most of the time it has the USD *first* but sometimes it might not. Keep in mind your update times as they are subject to change.
