perusvaluutan

Perusvaluutan, or base currency, is the first currency in a currency pair in foreign exchange markets. The price of the pair expresses how much of the quote currency is needed to buy one unit of the base currency. For example, in the pair EUR/USD with a rate of 1.1500, one euro costs 1.1500 US dollars.

The base currency serves as the reference for pricing, exposure, and settlement. If the base currency strengthens against the quote currency, the value of a long position in the base currency increases when quoted in the quote currency. A short position loses value as the base currency rises. Thus, traders monitor movements in the base currency to assess potential profit and risk.

In accounting and corporate finance, perusvaluutta may also refer to the functional or reporting currency used to measure and present transactions. Translation of financial statements into another currency uses exchange rates and can affect reported results and financial positions.

Common base currencies include the US dollar, euro, and Japanese yen. The US dollar is the most widely used base currency in international quotes and markets, reflecting its dominant role in global trade and finance. The choice of base currency can be influenced by market conventions, liquidity, and the economic prominence of the currencies involved.