Cross currency transaction is the base for transacting amongst various trading nations. International trade is centering around this aspect to settle the funds arising out of various trade that is taking place between them. Depending upon the strength and weakness of the specific currency the cross currency rate is decided and payment is done based on such conversion. Of late the USD was weakening against the Euro in the wake of increasing oil price. Based on the demand and supply for they said currency the cross currency rate is fixed and the payment is made. Most of the countries link their currency with USD in the matter of conversion to effect the trade payment to other countries.