Usd/eur or eur/usd?


sorry silly question but i m getting confused.

The cfa material says that you should write the currency as P/B so it means that at today’s rate usd/eur= 1.10. If it goes up it means that eur is appreciating.

however in every website i see it is shown eur/usd that = 1.10

i m a bit confused now. Which one is correct?

For the exam: CFA.

It always depends on your home currency (and conventions). USD/EUR is quite common in Europe, and a European investor would probably use it to measure the return. A U.S. investor may use EUR/USD. Be able to convert it if they give it the other way around.

But i mean which one equals to 1.10? Eur/usd or Usd/eur ?

It depends on the FX rate? Currently, it would be USD/EUR. You get 1.1 USD for each EUR. But this can change very quickly :wink:

JPY/USD (written in a text!) = USD:JPY = $/¥ = dollar is the price currency and yen is the base currency

In CFA text the convention is P/B. If USD/EUR = 1.1, it implies 1 Unit of Base = 1.1 unit of Pricing currency, in this case 1 EUR = 1.1 USD.

My understanding of the past exams & text has been that CFAI will not invert market rates for questions( say for ex - quoting USD/JPY as 0.008 instead of market quote of about 124 ).

The convention used by CFAI is not what is used in the Forex market ! Took me a while to understand this ( I work in Forex ).

The issue with FOREX is often a problem…