DEFINITION of American Currency Quotation
An American currency quotation is a direct quotation in the foreign exchange markets whereby the value of the American dollar is stated as a per-unit measure of a foreign currency. This type of quotation shows how much U.S. currency it takes to purchase one unit of foreign currency.
BREAKING DOWN American Currency Quotation
For example, an American currency quote would be US$0.85 per C$1. This shows that it will take only 0.85 U.S. dollars to purchase a single unit of Canadian currency. If you wanted to purchase C$1,000, it would cost you US$850.
The opposite of an American currency quotation is a European currency quotation where the foreign currency is the stated per-unit measure of the U.S. dollar. Using the Canadian dollar again as an example, C$1.5 per US$1. This explains that it will take 1.5 Canadian dollars to purchase a single U.S. dollar.
Example of currency pairs that are American currency quoted are USD/CAD, USD/JPY and USD/CHF.