FX Cross Rate

Forex & Currencies
Updated Apr 2026 • Has calculator

A currency exchange rate derived indirectly via a common third currency (usually USD).

What is FX Cross Rate?

An FX cross rate is an exchange rate between two currencies that is calculated indirectly through a third currency — almost always the US dollar — rather than quoted directly in the market. Most global currency pairs are priced against USD, so a EUR/JPY rate is derived by combining EUR/USD and USD/JPY. Cross rates are important for traders, multinationals, and investors who need to convert between non-USD currency pairs. Because the cross is derived from two USD-based rates, any discrepancy from the triangular arbitrage relationship is rapidly eliminated by traders.

Formula

A/B = (A per USD) × (USD per B)

Worked Example

Worked example — EUR/JPY Cross Rate — 2024

Q1 2024 average

Step 1  EUR/USD: 1.0800 (1 EUR = $1.08 USD)
Step 2  USD/JPY: 153.50 (1 USD = ¥153.50 JPY)
Step 3  EUR/JPY = 1.0800 × 153.50 = 165.78
Step 4  → Cross rate implies 1 EUR = ¥165.78 JPY (matches quoted EUR/JPY market rate)

Source: FRED — Japan / U.S. Foreign Exchange Rate & Euro / U.S. Dollar (2024-03-31)

Calculate FX Cross Rate

E.g. EUR/USD = 1.08 means 1 USD = 1.08 EUR

E.g. USD/JPY = 153.5 means 1 USD = 153.5 JPY

Cross Rate (B per A)

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Not investment advice.

How to Interpret FX Cross Rate

< 0
Invalid — rates must be positive
> 0
Cross rate in units of B per 1 unit of A (e.g. JPY per EUR)

📚 Forex Basics — Complete the path

  1. FX Cross Rate
  2. PPP
  3. Big Mac FX
  4. Interest Rate Parity
  5. Carry Trade Return
Sources
  1. FRED — Japan/US Foreign Exchange Rate
  2. CFA Institute — Economics, Currency Exchange Rates, 7th ed.
  3. Investopedia — Cross Rate