Definition – What does Currency Converter mean?
A currency converter is a tool, usually provided online, which helps the user calculate how much a specific amount of currency is worth in terms of another currency. People often use a currency converter to figure out how much a foreign item costs in terms of their domestic currency or how much a sum of money will be worth when changed into another currency.
ForexTerms explains Currency Converter
Currency converters are simple calculators that usually use bank exchange rates to make their calculations. More complex currency converters follow the market rates of currency pairs and are updated frequently as rates change. Currency values are constantly changing in the forex market, so currency converters are often working on old information.
For this reason, currency converters offer a good means of estimating an exchange rate, but the actual rate will usually change before the transaction is made.