Want to update 2 input state values dynamically without recursive calls

I am making a React application for a currency converter website. I have two <input> fields where the user can input the number to get the exchange rate as shown here: Screenshot of Component

The <input> fields are as follows:

<>
  <input
    id="1"
    placeholder="0"
    type="number"
    value={state1.value}
    onChange={handleChange}
    disabled={loading}
  />

// rest of the component

  <input
    id="2"
    placeholder="0"
    type="number"
    value={state2.value}
    onChange={handleChange}
    disabled={loading}
  />

The states for the input fields are:

const [state1, setState1] = useState({
    value: '',
    currency: 'USD',
    src: 'https://hatscripts.github.io/circle-flags/flags/us.svg',
});
const [state2, setState2] = useState({
    value: '',
    currency: 'INR',
    src: 'https://hatscripts.github.io/circle-flags/flags/in.svg',
});

I want the state2 to be updated when the user types in state1. And vice-versa. I don't want the auto-update of state2 again changing state1. The state change should happen only when the user gives input.

I have tried using session state to avoid unnecessary API calls. It solves the problem except for the infinite recursion.

I have already written a useEffect for state1 which works as expected. Now I want to do the same for state2 without an infinite useEffect loop.

async function fetchCurrencyRate1(from, to) {
    setLoading(true);
    try {
        const response = await axios.get('http://localhost:4000/convert', {
            params: {
                from: from.currency,
                to: to.currency,
            },
        });
        setState2((state2) => ({
            ...state2,
            value: (from.value * response.data.value).toFixed(4),
        }));
        console.log(response.data);
    } catch (error) {
        console.error(error);
    }
    setLoading(false);
}

useEffect(() => {
    setTimeout(() => {
        state1.value && fetchCurrencyRate1(state1, { ...state2 });
        if (state1.value === '') setState2({ ...state2, value: '' });
    }, 2000);
}, [state1]);

The infinite render occurs because the useEffect of state1 will fire each time state1 take a new value and since inside the effect you update state2 and this triggers useEffect of state2 and the code there updates state1 then useEffect of state1 will be called infinitely because state1 is an object so its value is always new.

you don't need useEffect for that, also you don't want to rerender the component twice on each input change you can simply make two separate handleChange functions for each input and make your logic in each one of them
something like this:

const handleChangeOne = async (e) => {
  // you can fetch data here instead
  setState1((prev) => {
    return {
      ...prev,
      value: e.target.value,
    };
  });
  setState2((prev) => {
    return {
      ...prev,
      value: (from.value * response.data.value).toFixed(4), 
    };
  });
};
const handleChangeTwo = async (e) => {
  // fetch data
  setState2((prev) => {
    return {
      ...prev,
      value: Number(e.target.value),
    };
  });
  setState1((prev) => {
    //
    return {
      ...prev,
      value: (from.value * response.data.value).toFixed(4),
    };
  });
};