Glossary · Currency

FX rate

The market price of one currency in terms of another — fluctuates daily and affects cross-currency salary comparisons.

Foreign exchange (FX) rates are the prices at which one currency trades for another in the global market. They move continuously based on interest-rate differentials, capital flows, trade balances, and risk sentiment. A USD/EUR rate of 0.92 means $1 buys €0.92, or equivalently €1 buys ~$1.09.

Mundevo's cross-currency comparisons (e.g. comparing salaries between cities in different countries) use a snapshot FX rate, disclosed on the page. That snapshot was correct at build time but the live rate can be 1-5% different on any given day. For a job offer you're about to accept, use the live mid-market rate from a service like Wise or XE.

Personal FX strategy matters when your savings or salary spans multiple currencies. Holding all savings in USD while earning in euros means a weakening dollar lifts your purchasing power and a strengthening dollar erodes it — a 10-20% swing over 12 months is unremarkable. Consider hedging with a multi-currency account if exposure is large.

Where Mundevo uses this

Compare cities — /compare

Related terms

Purchasing power parity (PPP)

An exchange-rate concept where a unit of currency buys the same basket of goods in any country — used to compare salaries internationally.

Emergency fund

Cash savings that cover 3 to 6 months of essential expenses — the financial cushion for job loss, illness, or relocation gaps.

← Back to the full glossary.