Exchange rates are a very important indicator for international trade businesses, investors, and economists. The values of currencies between different countries can directly impact many businesses’ profitability, investment planning, growth strategies, and success, reflecting changes in global markets. In particular, historical exchange rates help investors and businesses obtain detailed information about the market in which they invest. Today, the web service that provides historical currency data to businesses is called historical exchange rate API.
A historical exchange rate API keeps its database updated and accurate by obtaining data from official financial institutions such as the European Central Bank. Businesses using this API easily obtain historical currency data with high accuracy and have detailed information about the market they serve or invest in. In this article, we will first touch on the benefits of having information about the markets of enterprises with the historical currency API. Then, we will test a historical exchange rate API in just a few steps and obtain historical exchange rates.
What Are the Benefits of Knowing Market With Historical Exchange Rates API?
Knowing the market for businesses with the historical exchange rates API can provide them with many advantages and benefits. In this section, we will list some of these benefits.
Access to National and International Markets
Firstly, a historical exchange rates API allows businesses to easily and quickly access exchange rates between currencies of different countries. This is important for businesses looking to enter international markets. Exchange rates between different currencies directly affect transactions and pricing by exporting and importing businesses.
Understanding Market Trends and Changes
Historical exchange rate data provides the historical performance of currencies. By analyzing this data, businesses can understand trends and changes in the value of a currency in their market. Thus, with this information, businesses can take more accurate steps in predicting future price movements and understanding market trends.
Learn how to analyze the forex historical data with a historical exchange rates API!
Risk Management and Decision Making
Exporting companies may be affected by fluctuations in exchange rates and may face financial risks. This situation may cause businesses to make losses in the markets they invest. To avoid this, many businesses use historical exchange rate data. Using this data, they can create risk management strategies and be prepared for future exchange rate movements.
International Growth Strategies
Companies review historical exchange rate data when they want to enter different international markets or expand their existing assets. Historical exchange rate data can be an important criterion for assessing which markets have more attractive growth opportunities. Moreover, by using an IP geolocation API such as ipstack API, businesses can obtain information from which region provides more services to users in the international arena and examine the currency of that region for new investments.
How to Get Historical Rates With a Historical Exchange Rates API?
In this section, we will use the Fixer API, which offers the most popular historical exchange rates service in the market. Fixer API is a well-equipped web service that provides its users with both live and historical exchange rates of 170 currencies.
This API obtains the data it provides from various financial institutions and official banks such as Europen Central Bank. It also provides historical currency data up to that 1st January 1999. Thanks to all these unique features, it serves more than 200,000 developers and companies today.
To obtain historical exchange rates from this API, let’s sign up for one of the paid and affordable subscription plans provided by Fixer and obtain an API key.
Then, paste the following URL into the browser.
https://data.fixer.io/api/2013-12-24?access_key=API_KEY&base=GBP&symbols=USD,CAD,EURAfter updating the API key field, the historical exchange rates response we get when we send a request to this URL will be as follows.
Conclusion
As a result, historical exchange rate data has a lot of meaning for investors, businesses, and economists today. With this data, businesses especially have detailed information about their current markets or the markets they aim to serve in the future. Historical currency data can also enable businesses to understand how a particular event in currency rates (for example, an economic crisis or a political event) has an impact.
Discover our historical exchange rate data API, and join over 200,000 developers and businesses for free.
FAQs
Q: Does Fixer API Support the US Dollar?
A: Yes, Fixer API supports the US Dollar and additionally provides its users with exchange rate data of different currencies, such as the Euro and Canadian Dollar.
Q: Why Should I Use the Historical Exchange Rates API?
A: There are many reasons to use the historical exchange rates API. It helps you determine the right pricing strategies in international markets with historical exchange rate data. In addition, investors also use this API to diversify their portfolios and identify future investment opportunities.
Q: What Are the Popular Use Cases of the Historical Exchange Rate Data API?
A: The historical exchange rate data API has many popular uses. Businesses can develop risk management, profit margin determination, and product/service pricing strategies based on the analysis of historical exchange rate data. Additionally, investors also use the API to support portfolio management, trend analysis, and investment strategies.
Q: Where Does Fixer API Get the Data It Provides to Its Users?
A: Fixer API gets its data from various reliable and reputable financial data providers. European Central Bank is one of these data providers.
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