Dollar Rate

AAA

DEFINITION of 'Dollar Rate'

The exchange rate of a currency against the U.S. dollar (USD). Most currencies that are traded in international markets are quoted in terms of number of units of foreign currency per USD. However, some currencies, such as the euro, British pound and Australian dollar, are quoted in terms of U.S. dollars per foreign currency.

INVESTOPEDIA EXPLAINS 'Dollar Rate'

Since practically all currencies use the USD as the base currency, it is easy to calculate cross currency rates - which are exchange rates for one currency in terms of another currency that is not the US dollar. However, particular care must be taken when calculating such rates, especially if the currencies involved include those that are quoted in terms of USD per foreign currency.

RELATED TERMS
  1. Indirect Quote

    A currency quotation in the foreign exchange markets that expresses ...
  2. Paris Pair

    The nickname for the U.S. Dollar/French Franc currency pair prior ...
  3. Direct Quote

    A foreign exchange rate quoted as the domestic currency per unit ...
  4. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. U.S. Dollar Index - USDX

    A measure of the value of the U.S. dollar relative to majority ...
Related Articles
  1. Forex Education

    A Primer On Cross Currency Triangulation

    This method to transact business in euros while making profits at home is essential. Find out how it's done.
  2. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  3. Forex Education

    Make The Currency Cross Your Boss

    Tap into a world of possibilities by going beyond the simple pro- or anti-dollar trade.
  4. Forex Education

    Are Downside Tusuki Gap patterns important when trading forex pairs?

    Find out why forex traders use candlestick charting for currency pairs, and learn how the Downside Tasuki Gap pattern can be spotted for short-term gains.
  5. Forex Strategies

    What are common strategies traders implement when identifying a Bearish Engulfing Pattern?

    Learn how to spot a bearish engulfing pattern, and learn some of the trading strategies you can implement to take advantage of bear momentum.
  6. Bonds & Fixed Income

    End of Fed's Bond-Buying Program: 7 Things To Know

    This article helps investors understand the economic and financial effects that result when a central bank (like the Fed) ends its bond purchase program.
  7. Chart Advisor

    Trade Market Volatility With These ETFs

    Volatility tends to scare buy-and-hold investors, but there are ETFs designed to profit from it. Here's a look.
  8. Forex Education

    Why do Bitcoins have value?

    Performing with transactional anonymity, Bitcoin has value as a private digital currency, investment tool and social networking tool.
  9. Forex Education

    What are the advantages of paying with Bitcoin?

    Learn how payments made with Bitcoins offer certain advantages over standard currency, including user anonymity, no taxation and low-cost transactions.
  10. Fundamental Analysis

    Forex Exotic Currency Trading: Risks & Rewards

    Exotic currencies are off the beaten path and are not for novices, but experienced forex investors might find the high risk-reward potential exciting.

You May Also Like

Hot Definitions
  1. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  3. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  4. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  5. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  6. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
Trading Center