Conversion rate is the ratio between two currencies defining the value of one currency to the other. It is useful in foreign exchange markets for trading purposes, hence why it often fluctuate The supply and demand of the currency dictate the conversion rate. That is why institutions such as the governments or the central banks implement policies to inflate or deflate the rates by increasing or decreasing the country's money supply.

The ClearTax currency converter offers over 160 most commonly circulated currencies over the world such as Indian Rupee (INR), US Dollar (USD), Euro (EUR), Pound (GBP), Canadian dollar (CAD), Emirati Dirham (AED), Yen (JPY), Australian Dollar (AUD), etc.

The currency conversion rates between countries differ because the rates can be floating or fixed. The fixed exchange rate is fixed with another currency. In contrast, the floating exchange rate is calculated based on supply and demand and macroeconomic factors. It depends on the country's government to follow which system suits them best. Then the monetary policies implemented dictate the conversion rate.