Currency Exchange Rates Today
What is a Foreign Exchange Transaction?
An FX transaction may be useful in managing the currency risk associated with importing or exporting goods and services denominated in foreign currency, investing or borrowing overseas, repatriating profits, converting foreign currency denominated dividends, or settling other foreign currency contractual arrangements.
How does an FX transaction work?
When you enter into an FX transaction, you nominate the amount (the contract amount) and the two currencies to be exchanged. These currencies are known as the currency pair and must be acceptable to your foreign exchange provider.
You also nominate the maturity date on which you want the exchange of currencies to take place. Your FX provider will then determine the exchange rate, known as the contract rate, based on the date and currencies nominated by you. The contract rate is the rate at which the currencies will be exchanged.
On the contract date the contract amount must be exchanged with your FX provider at the contract rate, irrespective of where the foreign exchange rate is at the time.
How does your FX provider determine your contract rate?
It is the agreed exchange rate at which the currency pair will be exchanged on the date of maturity. Your currency provider determines the contract rate, taking several factors into account including:
Contract rates are quoted as spot exchange rates, value today exchange rates, value tomorrow exchange rates, or forward exchange rates, depending on the maturity date nominated by you.
App Store Prices Increase in Europe and Canada Amidst Product Price Hikes in Brazil (Macrumors)
After sending out an email to developers earlier in the week detailing App Store price changes coming to a few territories, Apple has today raised the price of apps in all countries within the European Union, Norway, Russia, and Canada. The price increases are due to shifting currency exchange rates and tax increases in some countries.
The price of the least expensive paid apps in the App Store, which are priced at $0.99 in the United States, moved from £0.69 to £0.79 in the UK, €0.89 to €0.99 in EU countries, and $0.99 to $1.19 in Canada, with similar price increases hitting the likes of Norway and Russia. On the other hand, app prices in Iceland are seeing a cut from where they were earlier in the week.
Simultaneously, the company has raised the prices of its products in Brazil by an average of 10 percent, where they're already the highest priced in the world. As reported by _ZDNet_, the 16 GB iPhone 5s jumped to R$ 2,500 ($938), a 13.6 percent increase from R$ 2,200 ($825). The iPhone 6 Plus saw a smaller 6.81 percent hike to R$ 4,700 ($1,763) from an original …
Swiss Franc Soars After Central Bank Drops Cap – New York Times
New York TimesSwiss Franc Soars After Central Bank Drops CapNew York TimesAs it scrapped the cap, the Swiss central bank simultaneously cut interest rates, already in negative terrain, hoping to offset some of the damage in foreign exchange markets. … “But anyone who has Swiss assets is a little bit richer today,” he added …
Investors were shocked this week
The currency markets rarely make front page news. Exchange rates in the developed world rarely make capital-destroying leaps. But that is exactly what happened this week when the Swiss National Bank removed the peg to the euro that kept the Swiss franc at a set rate against the other currency.