Cross Rate

Cross Rate Meaning:
In foreign exchange terminology, a cross rate usually refers to the exchange rate between two currencies neither of which is the U.S. Dollar. EUR/JPY and GBP/EUR are two common cross rates.

Cross Rate Example:

In order to be considered a cross rate, the forex quotation must involve two currencies other than the U.S. Dollar. Accordingly, a quotation for the E.U.ís Euro against the Japanese Yen would be considered a cross rate, as would a quotation for the Euro against the Swiss Franc or the Pound Sterling.