Cross rates

Exchange rates in which neither of the currencies are the US dollar are known as cross rates. This refers to an exchange rate calculated from two exchange rates for a third currency – the first for the base currency and the second for the price currency.

Cross rates is a generic term for all exchange rates not involving the US dollar. By using the different exchange rates against the Swedish krona, cross rates can also be calculated for the British pound against the euro, for example. Two values are obtained in this result, for example the British pound against the euro, and the euro against the British pound.