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What is a Currency Cross?
A currency transaction that does not involve USD on one side of the transaction is called a foreign exchange "Cross" and the amount of reference currency the market determines is required to deliver for one unit of the base currency is called the "Cross Rate".
EUR/JPY is an example of a currency pair Cross. In this example, the base currency is EUR and its value remains constant at one EUR. The reference currency is Japanese Yen (JPY). The value of the reference currency fluctuates higher and lower relative to the base currency. For example, if the EUR/JPY currency pair Cross Rate is quoted at 117.50, it means that one EUR costs JPY 117.50.Likewise, if the EUR/JPY currency pair Cross Rate increases to 120.00, the same EUR is now equivalent to JPY 120.00.