A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency or quote currency and the currency that is quoted in relation is called the base currency or transaction currency.
Currency pairs are sometimes then written by concatenating the ISO currency codes (ISO 4217) of the base currency and the counter currency, separating them with a slash character. Often the slash character is omitted. A widely traded currency pair is the relation of the euro against the US dollar, designated as EUR/USD. The quotation EUR/USD 1.2500 means that one euro is exchanged for 1.2500 US dollars.
The most traded currency pairs in the world are called the Majors. They involve the currencies euro, US dollar, Japanese yen, pound sterling, Australian dollar, Canadian dollar, and the Swiss franc.
Read more about Currency Pair: Syntax and Quotation, Base Currency, The Majors, Nicknames, Cross Pairs, Trading
Famous quotes containing the words currency and/or pair:
“Money is the worst currency that ever grew among mankind. This sacks cities, this drives men from their homes, this teaches and corrupts the worthiest minds to turn base deeds.”
—Sophocles (497–406/5 B.C.)
“Firm-style bean curd insoles cushion feet, absorb perspiration and provide more protein than meat or fish innersoles of twice the weight. Tofu compresses with use, becoming more pungent and flavorful. May be removed when not in use to dry or marinate. Innersoles are ready to eat after 1,200 miles of wear. Each pair provides adult protein requirement for 2 meals. Insoles are sized large to allow for snacks. Recipe booklet included.”
—Alfred Gingold, U.S. humorist. Items From Our Catalogue, “Tofu Innersoles,” Avon Books (1982)