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Exchange rate symbols

This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.

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August 27, 2021 at 2:03 pm #633132
buondaiqua
Member
- Topics: 22
- Replies: 18
Hi,
I have a question relating to the exchange rate symbols.
For example, we have a figure USD/Euro = 1.2.
What does this mean and what is considered to be the base and foreign currency?
I’m confused since my teacher said that in this case, Euro will be base currency and USD is foreign currency however, as I look at other sources they show the opposite answer.
Thank you so much
August 27, 2021 at 3:31 pm #633144
John Moffat
Keymaster
- Topics: 57
- Replies: 54684
Your teacher is correct, and it means that 1 euro is equal to 1.2 USD.
I do suggest that you watch again my free lectures on foreign exchange risk management.
August 28, 2021 at 11:36 am #633240
buondaiqua
Member
- Topics: 22
- Replies: 18
Thank you so much 🙂
August 28, 2021 at 11:53 am #633244
John Moffat
Keymaster
- Topics: 57
- Replies: 54684
You are welcome 🙂
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