A currency converter is a tool that is used to calculate the conversion values for two currencies. It shows the value of a currency to the relative values of other currencies. It is a highly useful tool for people who deal in foreign exchange or who travel across the globe for business or on holidays.
The currency converter keeps a track of most recent estimates of various world currencies. The value of different currencies is determined according to the demand and supply of trading prices between international banks. People can enter the value of the input currency they have (this is the currency they have in their hands) and get the expected value of the currency in which they want their funds.
One can use free currency converters on the internet to find the money exchange rate and the value of the total amount they are likely to get on exchange of the sum in their hand. These tools are available from online finance market leaders such as Paisabazaar and from leading search engines.
To understand the importance of currency converters, we need to understand its importance from the perspective of the forex market. To start with, it is important to examine and understand the two types of exchange rates and then the historical events that lead to the evolution of the currency exchange market as we know today.