In a currency pair quote, the quote currency, also known as the secondary currency, is the second currency shown.
In the currency pair EUR/USD, U.S. dollar (USD) is the quote currency. Euro (EUR) is what is known as the base currency.
For instance, the quote “EUR/USD 1.30” means that euro buyers would need 1.30 U.S. dollars to buy one euro. The quote currency has a variable value in relation to the base currency, which is the first currency shown, and always has a value of one.
In the vast majority of foreign exchange transactions, the quote currency is a major currency, led by the U.S. dollar. Other notable quote currencies include the euro, pound sterling, Japanese yen, the Swiss franc and the Canadian dollar.
If you want to find out the impact of foreign currencies in the earnings of international businesses, view currency exposure.