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标题: Foreign exchange relations - denominator [打印本页]

作者: bigredhockey55    时间: 2011-7-11 19:56     标题: Foreign exchange relations - denominator

In the foreign exchange relations with a fraction, do we always have the quoted currency (the "one") in the denominator?
作者: spreads    时间: 2011-7-11 19:56

What do you mean?

Like: AED 3.675/$
作者: ap0258    时间: 2011-7-11 19:56

For example, with PPP:

S1 / S0 = 1+I DC / 1+I FC

The currency (FC) in the denominator is the quoted currency (FCC).

I am looking for a general rule to define the currency in the denominator and believe it is true that it is always the quoted currency. Can anyone confirm this?
作者: FinancialAnaly    时间: 2011-7-11 19:56

Yes that is correct.

For eg:

So if you have $3.345/Euro which is equal to 1Euro3.345

be sure that the $ will be in the numerator and euro will be in the denominator

which will given the equation as:

S1/S0 = 1+I $ / 1+I Euro
作者: onelife1    时间: 2011-7-11 19:56

Because you are pricing the currency in the denominator.

NO EXCUSES




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