About the exchange rates we display
On MSN Money you can find both tourist rates and market rates. This sometimes leads to confusion over which rate you should choose to view. Here's a quick explanation:
Who supplies the exchange rates information I see on MSN Money?
The market rates currency converter market rates currency converter is supplied by Oanda.com.
The list of exchange rates in the MSN Money Investing section comes from Comstock and are also market rates. There may be small discrepancies between the the Comstock list of market rates and Oanda converter rates due to how each supplier calculates them and when they update their figures.
When should I choose to look at tourist rates?
If you're going abroad you'll probably want to buy some foreign currency. The tourist rates provided by Travelex show you the rates you will get if you buy your currency online with Travelex through the MSN Money website. These rates are similar to the rates you'll see advertised on the High Street by banks and other currency exchange services.
Each provider of currency services to consumers (Travelex is one such provider) will set its own tourist rate so it's always worth comparing to see who offers the best rates on the day you want to buy. Make sure you also check how much commission will be charged - this may be a fee or a percentage of the transaction value and affects how much you'll end up paying overall. The advantage of the Travelex online service is that it charges you no commission and allows you to pick up your currency at any one of 36 departure points (such as airports) across the UK.
When should I choose to look at market rates?
As a consumer you will never be able to buy currency at the market rates. The market rates - sometimes known as spot rates - shown by the Oanda currency converter on MSN Money are based on what are known as interbank market rates and generally reflect the exchange rates for transactions worth the equivalent of US $1 million or more. These are the rates you'll see quoted in newspapers and on TV news reports. The rates we display on the MSN Money UK homepage and MSN UK homepage are market rates (click them and you'll go to the MSN Money investing section where you can view historical market graphs).
t's worth understanding market rates and knowing what the latest rates are because it is this rate that is referred to in news reports and in any discussion about exchange rates and how they affect international trade or investment. Articles on MSN Money typically use the market rate (unless the writer specifically states they are using the tourist rate).
Uses of market rates for a typical consumer include:
1. If you are filling out an expenses form for your company where you need to include an exchange rate - because, for example, you stayed at a hotel in a foreign country and need to know a likely approximate charge that will appear on your next credit bill in your own currency. Credit card companies will not typically apply the exact market rate but it will be a reasonably close figure. Your company may, of course, have its own policy on which exchange rates to use.
2. Completing your tax return where, for example, you need to know the currency rate to calculate the value of shares denominated in foreign currencies. You can use the Oanda market rates currency converter on MSN Money to show historical rates - just select the date for which you want to see market rates (the default setting is the most recent date for which market rates are available - usually today!).
3. Calculating the current value of your share portfolio where some of the shares are not in your local currency.
How do tourist rates and market rates compare?
With tourist rates you get less foreign currency for each pound. So, at the time of writing (January 12 2005), one pound would buy you US $1.78. The market rate is £1=US $1.87.
Where can I find out more about the Oanda currency converter that MSN Money uses for market rates?
The Oanda website has plenty of useful information. Try the links below (each link opens a new browser window):