per dollar. Hence it is the indirect" in Rome. It will be readily appreciated that the selling rate for one currency is the buying rate for the other. For example, US dollar.2153 Indian Rupees 100 (as on March 31st, 2010) would be the corresponding indirect"tion in India for the US dollar. This principle can be stated in the form of a maxim: Buy Low, Sell High. In Hong Kong,.0761 pounds per HKD is an indirect". GBP/USD, aUD/USD, counter and base (or") currency. Thus, in indirect method, the numbers of units of local currency are kept constant and the number of units of foreign currency changes. Applying the same principle as discussed above in foreign exchange management we can state that the banker may also earn buying more quantity and selling less quantity of foreign currency at same rate. And also a margin of profit. Direct and Indirect", forex rates in the currency exchange market are displayed in pairs by market makers (or dealers).
Indirect quotation forex
A" such as N.7269 per NZD is home currency per unit of foreign currency in Norway. In the USD/JPY pair, the US Dollar is the base currency and the Yen is the" currency. For the sake of simplicity, most of the time the US Dollar is called the Foreign Currency, so for the majors we have the following: Direct Currencies, uSD/JPY, uSD/CAD, uSD/CHF, indirect Currencies, eUR/USD. Cross Currency What about cross-currency rates, which express the price of one currency in terms of a currency other than the US dollar? For each American" give the corresponding European" and vice versa. Direct"s refer to stating the cost of foreign currencies in terms of the buyer's local currency. If a person wants to buy or sell a currency, s/he has to pay for it with the currency that s/he owns or accept payment for it in terms of the currency that the buyer has. Indirect" indicates how many foreign currencies are needed to purchase one unit of domestic currency. In the direct", a lower exchange rate implies that the domestic currency is appreciating or becoming stronger, since the price of the foreign currency is falling.