Forex Rates: Understanding Cross Rates

Cross rates are rates between two currencies where neither is the US dollar.

A cross rate can be calculated from the respective rate for each of the currencies against the dollar.

Example

Consider the following rates:

USD/SEK   6.6270-6.6275

USD/SGD   1.4143-1.4148

From these rates for the Swedish krona and Singapore dollar against the US dollar, we can calculate a cross rate for the krona against the Singapore dollar.

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