American currency quotation

American Currency Quotation

A direct quotation in the foreign exchange markets whereby the value of the American dollar is stated as a per unit measure of a foreign currency.

Notes:

$US per $CDN would be an example of an American foreign currency quote. This is the typical method of quoting foreign exchange rates because the U.S. dollar has been the benchmark for quite some time. However, with the introduction of the Euro, the USD's position has been deteriorating.

See also: Currency, Direct Quote, European Currency Quotation, Exchange Rate, Forex, Indirect Quote

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American currency quotation

In foreign exchange trading, the value of a foreign currency in terms of the U.S. dollar. For example, if the euro is worth 90¢, the American currency quotation would be expressed as 0.90, meaning there are 0.9 dollars to the euro. Also called multiplier. Compare European currency quotation.