Cross Rate Calculator

Can't find a direct quote for two currencies? Use a common base currency (usually the USD) to calculate the implied exchange rate between any two foreign currencies.

Base Ratios

Implied Cross Rate (A/B)
0.8476
Converted Amount 847.60
Inverse Rate (B/A) 1.1798
Base Relation USD Based

Calculation Logic

Rate B / Rate A

What is a Currency Cross Rate?

In the foreign exchange market, most currencies are traded against the US Dollar (USD). A Cross Rate is an exchange rate between two currencies that does not involve the USD. For example, to find the exchange rate for EUR/GBP, a trader might look at the EUR/USD and GBP/USD rates and calculate the cross.

The Role of the Base Currency

Because the USD is the world's primary reserve currency, it serves as the "bridge" for almost all global conversions. Even if you want to swap Japanese Yen for Swiss Francs, your bank often executes two trades: JPY to USD, and then USD to CHF. The cross rate is the final mathematical result of these two steps.

Commonly Traded Crosses:

  • EUR/GBP: Euro vs. British Pound
  • EUR/JPY: Euro vs. Japanese Yen
  • GBP/JPY: British Pound vs. Japanese Yen (The "Beast")
  • AUD/NZD: Australian Dollar vs. New Zealand Dollar

Cross Rate FAQ

1. How do you calculate a cross rate manually?
If you have two rates with a common base (e.g., USD/A and USD/B), you divide Rate B by Rate A to find the cross rate for A/B. If one is a base and the other is a quote (e.g., EUR/USD and USD/JPY), you multiply them.
2. Why are cross rates important for traders?
Cross rates allow traders to speculate on the relative strength of two economies without being exposed to the volatility of the US Dollar. It provides more focused trading opportunities.
3. What is the 'Base' currency in a pair?
The base currency is the first currency listed in a pair (e.g., in EUR/USD, EUR is the base). It represents one unit, and the exchange rate tells you how much of the second currency (the quote) is needed to buy it.
4. Do cross rates have higher spreads?
Generally, yes. Because cross pairs (like GBP/NZD) have lower liquidity than major pairs (like EUR/USD), brokers often charge a wider spread to compensate for the risk.
5. What is Triangular Arbitrage?
This is a trading strategy that exploits price discrepancies between three different currencies. If the cross rate offered by the market differs from the calculated cross rate, a trader can make a risk-free profit.
6. Why is the USD used as the bridge?
The USD is used because it is the most liquid currency in the world. Trading through the USD is often cheaper (even with two transactions) than finding a direct buyer/seller for two minor currencies.
7. How does interest rate parity affect cross rates?
Cross rates are heavily influenced by the interest rate differential between the two countries. If the ECB raises rates while the BoE keeps them steady, the EUR/GBP cross will typically rise.
8. Is the calculation the same for JPY pairs?
The math is the same, but you must be careful with decimal places. JPY is quoted to 2 decimal places, while most others are quoted to 4 or 5.