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cross currency

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Financial Dictionary

Cross Currency

A pair of currencies traded in forex that does not include the United States dollar.

Investopedia Commentary

Historically, an individual who wished to exchange a sum of money into a different currency would be required to first convert that money into U.S dollars, and then convert it into the desired currency. But cross currencies help individuals and traders bypass this step of converting into U.S dollars. The GBP/JPY cross, for example was invented to aid individuals in England and Japan who wanted to convert their money into the other currency without having to first convert into U.S dollars.

Related Links

Make The Currency Cross Your Boss
Identifying Trending & Range-Bound Currencies
A Primer On The Forex Market

See also: Base Currency, Currency Pair, Exchange Rate, Foreign Currency Effects, Forex, Quote Currency

Also spelled: currency-cross, currency cross, currency crosses

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