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Thursday, February 24, 2011

How to use the Yahoo foreign currency exchange rate converter

The Yahoo foreign currency converter is quick and simple to use and takes the math out of computing foreign exchange by hand or with a calculator. Yahoo's foreign currency converter determines the exchange rate for 154 worldwide currencies and provides historical data, bid ask spreads, currency exchange inversion and major currency conversion in addition to related financial and/or monetary news links. This article will illustrate how to use the yahoo currency converter and applicable features. 

The Yahoo currency converter can be used for a number of purposes.

• Planning trips or vacations in which currency conversion is required
• Cross-referencing forex quotes across major currencies
• Converting currencies that are less well known or exchanged
• Sourcing data for use in spreadsheet software analysis
• Obtaining historical line graphs of currency exchange movement

Converting a single currency into another currency

To convert a currency using Yahoo foreign currency converter simply go to the web address provided in the link above and type the denomination of the currency to be converted, then select the currency to be converted in the drop down menu on the right of the denomination. After this, select the currency the first currency will be converted into. For example, $1 USD to be converted into British pounds will read 1 U.S. Dollar (USD) into British Pound (GBP). After pressing on convert the exchange rate for the day of conversion will be revealed. For example, $1 USD is equal to .6531 GBP.

Step 1: Go to Yahoo currency web address
Step 2: Enter numerical amount to be converted
Step 3: Input currency to be converted Ex U.S. Dollars
Step 4: Select currency to be converted into Ex. British Pounds
Step 5: Press convert to reveal converted denomination in pounds

Calculating the inverse of a currency conversion 

To calculate the inverse of a currency conversion using Yahoo currency converter proceed with the steps above. Following this a conversion spread sheet will be displayed with six columns indicating the currencies being converted, the date, the exchange rate, the converted amount and the market prices for the currency that is being converted into. Below this will be a graph of historical data indicating the conversion for the same amount of currency for a given time period.

At the top right of this graph will be an 'Invert currency' button-link that will reverse the conversion. After pressing this button, the original entries will be reversed except for the numerical denomination that will stay the same. For example, 1 British pound will now be converted into 1 U.S. Dollar, using the same exchange rate as above, this would be $1.5306 for each singe British pound. As with the original conversion a graph will appear below the conversion spreadsheet, except the new graph will illustrate the new currency that is converted into which is now U.S. dollars rather than British pounds.

Using the data from the Yahoo currency converter

To use the data from the yahoo currency converter one can download the converted information into a spreadsheet. This will include the same information that is listed in the Yahoo online conversion sheet but can be transferred to an excel spreadsheet for storage and analysis. 

Additionally, the home page of the Yahoo currency converter lists conversion of the primary currency into 6 other currencies including the Japanese Yen, Euro, Canadian Dollar, British Pound, Australian Dollar and Swiss Franc. If the currency converter is used on a daily in an ongoing manner, one can simply copy and paste the data from the Yahoo currency multiple currency spreadsheet into an excel spreadsheet for further computations, statistical outputs, graphing, analysis etc.

The Yahoo currency converter makes calculating exchange rates easy, however the dates for which currencies are calculated are current meaning only the graph of the currency converter will illustrate past conversion rates. The amount of time it takes to convert currency using Yahoo currency converter is short. 

The online converter can also be used for a range of purposes as listed after the first paragraph above. The Yahoo currency converter is free to use, and also indicates how much a currencies exchange rate has moved within a single day as evident in the Yahoo currency conversion home page and after conversion page graphs. Google also has a currency converter, however in comparison, the features are limited.