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Cross Rate

Understanding the Cross Rate

In the transaction described above, the U.S. dollar is used to establish the value of each of the two currencies being traded.

For example, if you were calculating the cross rate of the British pound versus the euro, you would first determine that the British pound, as of June 6, 2022, was valued at 1.25 to one U.S. dollar, while the euro was valued at 1.07 to one U.S. dollar.

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