Do Exchange Rates Differ Between Markets?
1 High-speed computer linkages between trading centers mean there is no significant difference between exchange rates in the differing trading centers
2 If exchange rates quoted in different markets were not essentially the same, there would be an opportunity for arbitrage - the process of buying a currency low and selling it high
3 Most transactions involve dollars on one side—it is a vehicle currency along with the euro, the Japanese yen, and the British pound