Definition, Meaning & Synonyms

cross-rate

noun

/krɔs-reɪt/

Definition

A cross-rate is the exchange rate between two currencies that are both not the official currency of the country in which the quote is made.

Examples

The cross-rate between the euro and the British pound can fluctuate significantly due to market conditions.
Investors often look at cross-rates to assess the relative strength of different currencies.
The broker provided the cross-rate for the Canadian dollar against the Australian dollar.

Meaning

Cross-rates are used in foreign exchange markets to determine how much of one currency can be exchanged for another, especially when both currencies do not have a direct exchange rate with the local currency.