A cross rate shows the exchange rate between two currencies calculated through a third currency. This calculator displays a matrix of rates so you can instantly compare your base currency against all major world currencies.
How This Calculator Works
This calculator provides comprehensive currency comparison:
- Base Currency: Select your home currency (USD, EUR, GBP, etc.)
- Target Currencies: Automatically shows rates for major currencies
- Cross Rate Matrix: View all exchange rates in a single table
- Inverse Rates: See rates in both directions
The Formula Explained
Direct Quote: 1 Base Currency = X Target Currency
Cross Rate = Currency A/USD × USD/Currency B
Example: If USD/JPY = 150 and USD/EUR = 0.92: EUR/JPY = (1/0.92) × 150 = 163
Cross rates help find arbitrage opportunities and compare currency values.
Step-by-Step Example
USD Cross Rate Matrix
| Currency | Rate (per $1 USD) | Inverse |
| EUR | 0.92 | 1.087 |
| GBP | 0.79 | 1.266 |
| JPY | 149.5 | 0.0067 |
| CAD | 1.36 | 0.735 |
| AUD | 1.53 | 0.654 |
| CHF | 0.88 | 1.136 |
From this, you can derive any cross rate: EUR/GBP = 0.92/0.79 = 1.165
Frequently Asked Questions
What is a cross rate in currency trading?
A cross rate is an exchange rate between two currencies that doesn't involve USD. Since most currencies are quoted against USD, other pairs are calculated by crossing through the dollar. EUR/JPY is a cross rate—calculated from EUR/USD and USD/JPY. Cross rates expand your currency comparison options.
Why are most currencies quoted against USD?
The US dollar is the world's primary reserve currency, used in 88% of all forex trades. Quoting against USD simplifies trading and provides liquidity. Rather than needing direct markets for every possible pair (hundreds of combinations), everything trades against USD and cross rates are derived.
How do I read a cross rate table?
In a cross rate matrix, find your source currency row and target currency column. The intersection shows how much of the target you get per unit of source. If EUR row shows 1.165 in the GBP column, 1 EUR = 1.165 GBP. The inverse (GBP to EUR) would be 1/1.165 = 0.858.
What moves cross rates?
Cross rates move based on relative strength of the two currencies involved. If EUR strengthens vs USD while GBP stays flat, EUR/GBP rises. Interest rate differentials, inflation rates, trade balances, and economic data from both countries affect cross rates. Political stability also plays a role.
Are cross rates important for travelers?
Yes! If you're traveling from Canada to Japan, the CAD/JPY cross rate matters more than either currency's USD rate. However, most currency exchange services still convert through USD internally. Understanding cross rates helps you recognize fair exchange rates at airports and banks.
What is triangular arbitrage?
Triangular arbitrage exploits temporary rate inconsistencies across three currencies. If calculated cross rates don't match quoted rates, traders can profit by cycling through all three. Example: Buy EUR with USD, buy GBP with EUR, buy USD with GBP—if the final USD exceeds what you started with, that's arbitrage. Banks eliminate these opportunities quickly.
How do cross rates relate to forex trading?
Active forex traders use cross pairs to diversify beyond USD exposure. If you're bearish on EUR but not bullish on USD specifically, you might trade EUR/GBP instead. Cross pairs often have different volatility patterns and trading opportunities than major USD pairs.
Where can I find accurate cross rates?
Reliable sources include: (1) Google Finance or Yahoo Finance for mid-market rates, (2) XE.com for comprehensive currency data, (3) Your forex broker for tradeable rates, (4) Central bank websites for official rates. Remember: actual exchange rates you receive will differ due to buy/sell spreads.
Key Points to Remember
- USD is the hub: Most cross rates derive from USD pairs
- Calculate yourself: Cross Rate = A/USD × USD/B
- Spreads double: Cross pairs often have wider trading spreads
- Compare carefully: Different sources quote differently
- Inverse relationship: Rate A→B = 1 / Rate B→A