Base Currency

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The reference currency in a currency pair. It shows how much the base currency is worth compared to the second currency. For example, if the USD/CHF rate is 1.6215 then one USD is worth CHF 1.6215. On forex markets, the 'base' currency for quotes is often the US Dollar. This means that quotes are stated as a unit of $1 USD per the second currency. However, the British Pound, the Euro and the Australian Dollar, also serve as a base currency.