cross rate
Cross Rate
In foreign exchange, the exchange rate of currencies being traded in a country that does not utilize either of those currencies. For example, a trader in Britain dealing in Mexican pesos and euros will trade them at the cross rate. Less frequently, the cross rate refers to any exchange rate that does not involve the U.S. dollar. See also: Cross currency.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
cross rate
The rate at which two currencies exchange based on exchange rates using a third currency. For example, the cross rate of euros for yen might be based on the rate of euros for dollars and dollars for yen.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
cross rate
the EXCHANGE RATE between two foreign currencies derived from the exchange rate of each of these currencies in terms of a common third currency For example, the exchange rate between the UK pound and the Japanese Yen would be calculated by reference to the exchange rate of each of these currencies against, say, the US dollar.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson