Finance & Money · 货币对（Currency Pair） · Updated 2026-10-25
What Is Currency Pair?
Definition
A pair is written base/quote; the price shows how many quote units one base unit buys. USD/CNY rising 7.20→7.30 means the dollar strengthened and the yuan weakened (each dollar costs more yuan); CNY/JPY rising 20→21 means yuan strength versus yen. A pip is typically the 4th decimal (2nd for JPY pairs); bank FX spreads for wire vs cash and bid/ask are quoted in pips. For overseas spending, watch the quote side — your real purchasing power in the destination.
Formula
Cross rate: EUR/GBP = (EUR/USD) ÷ (GBP/USD)
Worked Example
Bank quote USD/CNY: bid 7.19, ask 7.21. Buying $10k costs 72,100 yuan; converting back gets 71,900 — the 200-yuan round trip is the bank's spread.
Common Misconception
Reading a rising USD/CNY as "yuan getting stronger" — inverted: under this quote the dollar strengthens and the yuan weakens. Only in CNY/XXX quotes does a rise mean yuan appreciation. Get the direction wrong and every FX timing decision flips.
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