What is Currency History
Currency history is a term that refers to the values of a base currency over time, specifically in relation to the values of other foreign currencies.
Forex day traders use the historical currency exchange rates to get a historical reference to how a currency pair has traded in relation the currency with which it is paired. A sound interpretation of this historical relation can predicting future price movement for these currencies.
BREAKING DOWN Currency History
Currency history data for exchange rates is very valuable for forex traders and others seeking convert their currencies and gain returns. Whether it's for speculative reasons, such as with a retail forex day trader, or for physical delivery, such as with person planing on international travel and looking for conversion information, the ability to know what rates are today, compared to currency exchange rates of the past, is a valuable planning and trading tool.
There are many retail forex brokers that provide this information for free. Other sometimes charge a nominal fee for this data. It's important to do your own research before deciding where to get your historical currency exchange rate data.
Getting Information on Currency History
One place investors and travelers can gain insights into currency history data is the Internal Revenue Service, which publishes tables of information on yearly average currency rates, with simple instructions: "To convert from foreign currency to U.S. dollars, divide the foreign currency amount by the applicable yearly average exchange rate."
The International Monetary Fund also offers troves of historical currency data, along with an exchange rate query tool, to help with research into past relationships and trends.
Bloomberg also has resources to help track currencies, analyze the historical relationship between them and evaluate their potential future values. Other information can be gleaned from retail forex brokers, who may charge a fee.
The OANDA Historical Currency Converter offers access to "25 years of historical exchange rates for over 38,000 currency pairs," and the ability to download the data into a useful format for "spot checking, analysis and reporting."
The University of Maine compiles an array of other sources that could be accessed for historical foreign exchange rate data. It explains that the central bank or other monetary authority of each country is crucial for finding Historical Foreign Exchange information. A list of central banks can be found through the Bank for International Settlements.