In the realm of finance, we often come across the term "base currency" when discussing currency pairs. In simple terms, the base currency is the first currency listed in a pair, and it represents the value of that currency against the second currency. For instance, if we take the USD/INR pair with a value of 74.57, it indicates that one US dollar is equivalent to 74.57 Indian rupees. Understanding the concept of base currency is crucial in comprehending the dynamics of currency exchange.
