1. What Is Historical Exchange Rate?

Historical exchange rate refers to the value of one currency in terms of another currency on a specific past date. This data is crucial for financial analysis, accounting, and historical comparisons.

2. How Does The Calculator Work?

The calculator retrieves and displays the exchange rate for the specified date:

Where:

• \( Historical\ Rate \) — The exchange rate on the specified historical date
• \( Rate\ on\ Specified\ Date \) — Actual exchange rate value from historical data
• \( Date \) — The specific date in YYYY-MM-DD format
• \( Currency \) — The target currency being queried

Explanation: This calculator accesses historical foreign exchange databases to provide accurate exchange rates for any given date in the past.

3. Importance Of Historical Rate Data

Details: Historical exchange rates are essential for financial reporting, tax calculations, investment analysis, and understanding currency trends over time. They help in reconciling international transactions and assessing currency risk.

4. Using The Calculator

Tips: Select the desired currency from the dropdown menu and choose a specific date using the date picker. The calculator will retrieve and display the historical exchange rate for that currency on the selected date.

5. Frequently Asked Questions (FAQ)

Q1: How far back can I retrieve historical exchange rates?
A: Most financial data providers maintain historical exchange rate data going back several decades, typically from the 1970s or earlier for major currencies.

Q2: Are weekend and holiday rates available?
A: For dates when markets were closed (weekends, holidays), the rate from the last trading day is typically used for consistency.

Q3: How accurate are historical exchange rates?
A: Historical rates are based on official closing prices from interbank markets and are considered highly accurate for financial reporting purposes.

Q4: Can I get rates for exotic currencies?
A: While major currencies have extensive historical data, availability for exotic currencies may be limited, especially for very old dates.

Q5: What time of day are the rates recorded?
A: Most historical data uses the closing rate at 4:00 PM London time, which is the standard for foreign exchange markets.