Exchange rates

The exchange rate reflects the price of a nation’s currency in terms of another currency. This price is determined on the foreign exchange market, which is by far the largest financial market in the world. Exchange rates influence the economy on many levels at the same time. For consumers, exchange rates determine how expensive imported goods are – from crude oil and electronics to food. If the domestic currency loses value (i.e. “depreciates”), imports become more expensive, which can drive up inflation. If, on the other hand, it gains in value (“appreciates”), import prices will fall. At the same time, domestic exports will become more expensive on the world market and therefore harder to sell. 

For companies that operate internationally, exchange rates are a key cost and risk factor, against which they often hedge using financial instruments (derivatives). Exchange rates also play an important role for investors, as they affect the return on foreign investments.

Why are exchange rates important for price stability?

Precisely because exchange rates affect so many sectors of the economy, central banks, finance ministries and international organisations constantly monitor them. Significant or sudden movements in exchange rates can jeopardise price stability, distort trade flows and undermine financial stability – for example, when companies or governments hold debt denominated in foreign currency. In monetary policy, the exchange rate is an important channel for transmitting policy signals: Changes in key interest rates affect inflation and economic activity also via the exchange rate. Furthermore, exchange rates provide important indications of international markets’ confidence in a country’s economic stability.

Current euro exchange rates

The ECB publishes daily reference rates for the exchange rates of major currencies against the euro for information purposes (on working days). The table below shows the reference rates (valuation rates) set daily by the ECB, broken down by currency. With effect from 2 March 2022, the ECB has suspended the publication of a reference rate for the Russian rouble until further notice. Further information is available on the ECB’s website under the link below.

Historical euro exchange rates

Here you can view the exchange rates of one or more currencies against the euro over a period of your choice – either as a table or a chart.

This chart shows how much foreign currency you get for one euro. If the exchange rate rises, this means that the domestic currency – in this case, the euro – is getting stronger: You get more foreign currency for one euro; the euro is appreciating.