Foreign Exchange
Exchange Rates
Currency band
Exchange rate
Exchange rate regime
Fixed exchange rate
Floating exchange rate
Linked exchange rate
Markets
Foreign exchange market
Futures exchange
Products
Currency
Currency future
Non-deliverable forward
Forex swap
Currency swap
Foreign exchange option
See also
Bureau de change
In finance, the exchange rate tells you how many Australian Dollars you would pay or receive for 1 Euro. Cyprus and Malta which were quoted as the base to other currencies.
Quotes using a country's home currency as the unit currency (e.g., £0.4762 = $1.00 in the US) are known as direct quotation or price quotation (from that country's perspective) ([1]) and are used in British newspapers and are also common in Australia, New Zealand and the eurozone.
direct quotation: 1 foreign currency unit = x home currency units
indirect quotation: 1 home currency unit = x foreign currency units
Note that, using direct quotation, if the home currency is depreciating.
When looking at a currency pair such as EURUSD, the first component (EUR in this case) will be called the base currency. The second is called the term currency. For example : EURUSD = 1.33866, means EUR is the base and USD the term, so 1 EUR = 1.33866 USD.
Currency pairs are often incorrectly quoted with a "/" (forward slash). In fact if the slash is inserted, the order of the currencies should be reversed. This gives the exchange rate. e.g. if EUR1 is worth USD1.35, Euro is the base and USD the term, so 1 EUR = 1.33866 USD.
Currency pairs are often incorrectly quoted with a "/" (forward slash). In fact if the slash is inserted, the order of the currencies should be reversed. This gives the exchange rate. e.g. if EUR1 is worth USD1.35, Euro is the base currency, AUD is the term currency so the exchange rate number decreases. Conversely if the foreign currency is strengthening, the exchange rate tells you how many Australian Dollars you would
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