Base Currency

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The base currency, or denominator, is the first in a currency pair, the second currency is the quoted currency. The value of the quoted currency is expressed in terms of one unit of the base currency. In euro/dollar, for example, the value of the dollar is quoted or expressed in terms of one euro. With Canadian dollar/U.S. dollar, the value of the U.S. dollar is quoted in terms of one Canadian dollar. It is also typically considered the domestic currency or accounting currency. For accounting purposes, a firm may use the base currency to represent all profits and losses.
 [source: http://www.investopedia.com]

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University