Base Currency is the first currency in a currency pair used in foreign exchange (forex) markets, against which the value of another currency is measured.
Base Currency is a fundamental concept in foreign exchange (forex) trading. In any currency pair (like USD/INR or EUR/USD), the base currency is the first currency listed, and it represents the value of one unit of that currency.
The second currency in the pair is called the quote currency, which shows how much of that currency is needed to buy one unit of the base currency.
For example:
Base currency is important for traders, businesses, and investors dealing in international trade, as it helps in understanding exchange rates and currency movements. It is also used in accounting when companies operate in multiple countries and need a standard currency for reporting.
"In the currency pair EUR/USD = 1.10, EUR is the base currency. This means 1 Euro equals 1.10 US Dollars."