Base currency
(redirected from Base Currencies)Base currency
Applies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Base Currency
In foreign exchange, the first currency listed in a currency pair. Normally, it is either the domestic currency or the dominant forex currency. Firms dealing in multiple currencies calculate all profits and losses in the base currency.
The base currency is assigned the value of 1 when calculating exchange rates. For example, if one is calculating the exchange rate of the U.S. dollar to the British pound and the pound is the base currency, it is expressed as GBPUSD and read as "dollars per one pound." See also: quote currency.
The base currency is assigned the value of 1 when calculating exchange rates. For example, if one is calculating the exchange rate of the U.S. dollar to the British pound and the pound is the base currency, it is expressed as GBPUSD and read as "dollars per one pound." See also: quote currency.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved