The development of technology has directly facilitated human life in many aspects, such as transportation, shopping, and communication. However, the development of technology has brought a revolution in an important issue that concerns traders and businesses. They can now effortlessly access the exchange rate history of any currency with a historical exchange rates web service.
Access to both live and historical exchange rates is getting faster and easier with the development of technology day by day. Historical exchange rates are a very important resource that provides the opportunity to examine the exchange rates and currency values of past periods. This data helps businesses and users understand past financial movements while allowing them to analyze changes and seasonal trends throughout economic history. Access to this very important resource is now reduced to milliseconds. In this article, we will talk about the importance and use cases of the exchange rate History of any currency in order to better understand it. Then, in 2023, we will introduce the best historical exchange rates API that provides us with this data.
What is the Importance of the Historical Exchange Rates?
Historical exchange rates play a very important role, especially in financial analysis and economic evaluations. This data greatly assists businesses and users in understanding past financial movements, predicting future trends, and making decisions in various fields. Since the importance of these data is increasing day by day, we see them in many use cases. Here are some use cases for the importance of historical exchange rates:
- Economic Analysis: One of the most common use cases for historical exchange rate data is to evaluate the economic situation. The value of a country’s currency against other countries’ currencies is a method that reflects its economic health. Analysis of past exchange rates helps to evaluate factors such as economic growth, inflation, and foreign trade balance.
- Investment Strategies: Investors can develop their investment strategies with the most accurate data by using historical exchange rate data. By examining exchange rate movements in the past, they can try to predict potential investment opportunities in the future.
- Risk Management: Businesses may face many risks in international trade and financial activities due to fluctuations in exchange rates. Past exchange rates are a very important source for predicting future risks. Thus, businesses use this data to develop risk management strategies.
- Historical Research: Historical exchange rates are a valuable resource for historians and researchers. Historical exchange rates are used to examine the effects of economic and political events in certain periods.
- Policy Evaluations: The value of a country’s currency against the currencies of other countries shows the results of monetary policies according to the steps taken. Historical exchange rate data is used to evaluate the effects of a country’s monetary policies and to review policy decisions.
Discover more use cases of the currency exchange rates API!
The Fastest and Most Convenient Way to Access Historical Rates: The Fixer API
Today, there are many ways to access historical exchange rates. The most popular and most convenient of these ways is to use the Fixer API, which is a well-equipped historical exchange API.
Fixer API is actually a forex (foreign exchange) API. It provides current and historical exchange rates for 170 official currencies. The accuracy of the data provided by Fixer is also quite high. It obtains the data it provides from official institutions such as the European Central Bank. Moreover, this API provides its users with different services at multiple endpoints. For example, the convert endpoint for currency conversion or the time-series endpoint for time-series data.
Finally, this API also has a free subscription plan. This plan is limited to 1,000 API calls per month. Additionally, their paid plans are also quite affordable. They also start at just $14.99 per month for 10,000 API calls.
How to Get Foreign Exchange Historical Rates with the Fixer API?
In this section, we will see how we can use the Fixer historical exchange rates API in the browser. For this, we first need an API key. We will sign up for one of the paid plans that Fixer offers us and get an API key.
Learn how to visualize and analyze historical data of USD/JPY currencies with Python!
Then, let’s put the following URL in the URL section of any browser.
https://data.fixer.io/api/2013-08-12?access_key=YOUR-ACCESS-KEY&base=USD&symbols=TRY,CAD,EURThis endpoint will provide us with the values of USD currency against TRY, CAD, and EUR currencies on the 12th of August, i.e. a Monday, in 2013. Let’s put our own API key in the ‘YOUR-ACCESS-KEY’ field in this endpoint and make a request.
Conclusion
In summary, historical exchange rates are a valuable resource for businesses and users to evaluate economic developments, create investment strategies, manage risks, conduct historical research, and evaluate monetary policies. This data helps them track currency changes throughout economic history and predict future trends.
Take a look at the most popular historical exchange rates API of recent times, and easily take your business one step further!
FAQs
Q: Can I Convert Canadian Dollar to US Dollar with the Fixer API?
A: Yes, you can. Fixer is an API that provides conversion service for 170 currencies. Among the 170 currencies, there are also popular currencies such as the Canadian Dollar, the US Dollar, and the Euro.
Q: What is the Initial Paid Plan’s Price of the Fixer Historical Exchange Rates API?
A: Fixer API offers multiple paid plans to its users. These paid plans start at $14.99 per month and go up to $99.99.
Q: How Many Currencies Does Fixer Historical Exchange Rates API Provide?
A: Fixer API supports 170 official currencies around the world and offers both live and historical exchange rate data for them.
Q: What are the Best Tips to Choose the Best Historical Exchange Rate Tool?
A: Here are the suggested tips for choosing the best historical exchange rate instrument:
- Reliability and Accuracy
- User-Friendly Interface
- A Wide Range of Data Covering Various Currencies
- Historical Data
- Free Trial Plan
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