A base currency is the first currency in a currency pair against which the value of another currency (the quote currency) is measured.

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In a currency pair like EUR/USD, the base currency is EUR (Euro), and the quote currency is USD (US Dollar). The value of the pair represents how much of the quote currency is needed to purchase one unit of the base currency.

For example, if EUR/USD is quoted at 1.10, it means 1 Euro (EUR) is equivalent to 1.10 US Dollars (USD).

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