Cross Exchange Rate – Simple Understanding

  Cross Exchange Rate  Cross Exchange Rate is an exchange rate between two foreign currencies which is computed with the reference of third currency normally in terms of US $. The base currency US$ always has value of 1$. If for example, we know the exchange rate between Rupees (Rs.) and Pound Sterling (£) and exchange rate of Pound Sterling (£) and US ($), but we do not know the exchange rate between Rupees (Rs.) and US ($), we can calculate this by using cross rate calculations. Example: Using Direct Quote The spot rate of Rupees (Rs.) to and Pound Sterling (£) is Rs.284.76 = 1...

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