A Cross Exchange Rate Calculator helps users determine the exchange rate between two currencies that are not directly quoted against each other. It does this by using a common third currency, often the US Dollar (USD), to find the relative value of one currency against another. This is especially useful in global trade, foreign exchange markets, and travel, where direct exchange rates may not be available.
The cross exchange rate is essential for traders, investors, and businesses dealing with international transactions, allowing them to make accurate currency conversions. Instead of relying on multiple calculations manually, this calculator simplifies the process by using a formula that ensures accuracy and consistency in currency conversion.
Formula of Cross Exchange Rate Calculator
The formula for calculating the cross exchange rate is:
Cross Exchange Rate = (Exchange Rate of Currency A / Exchange Rate of Currency B)
Where:
- Currency A is the first currency you want to convert.
- Currency B is the second currency.
- Exchange Rate of Currency A is the exchange rate of Currency A relative to a third currency (usually USD).
- Exchange Rate of Currency B is the exchange rate of Currency B relative to the same third currency (usually USD).
By applying this formula, users can determine the correct exchange rate even if the two currencies do not have a direct trading relationship.
Pre-Calculated Cross Exchange Rates Table
To save time and avoid manual calculations, the table below provides common cross exchange rates based on USD as the reference currency. These values are updated regularly to reflect market trends.
| Currency Pair | USD to Currency A | USD to Currency B | Cross Exchange Rate |
|---|---|---|---|
| EUR/GBP | 1.10 | 1.30 | 0.85 |
| EUR/JPY | 1.10 | 150.00 | 0.00733 |
| GBP/JPY | 1.30 | 150.00 | 0.00867 |
| AUD/CHF | 0.70 | 0.90 | 0.7778 |
| CAD/EUR | 1.35 | 1.10 | 1.2273 |
This table provides users with commonly searched exchange rates for easy reference.
Example of Cross Exchange Rate Calculator
Let’s say you want to find the exchange rate between EUR and JPY, but only have their exchange rates relative to USD.
- Suppose:
- USD to EUR = 1.10
- USD to JPY = 150.00
- Using the cross exchange rate formula:Cross Exchange Rate (EUR/JPY) = (USD to EUR) / (USD to JPY)
Cross Exchange Rate (EUR/JPY) = 1.10 / 150.00
Cross Exchange Rate (EUR/JPY) = 0.00733
This means that 1 EUR is equivalent to 0.00733 JPY.
Most Common FAQs
A cross exchange rate calculator helps convert currencies that do not have a direct exchange rate. It is especially useful for forex traders, travelers, and international businesses that need accurate conversions.
Yes, the formula applies universally, as long as both currencies are compared against the same third currency (usually USD or EUR).
Exchange rates fluctuate constantly due to market demand, geopolitical events, and economic conditions. It is recommended to check for real-time rates before making any financial decisions.