June 6, 2017 9:38:54 AM EST
by Newsmovesmarketsforex Staff Writer
The silver dollar (first national currency of the Republic of China) can be an incredible piece of collection and a conversation piece – it is of very little financial significance in the landscape of Forex.
Although there are currently 180 currencies in circulation around the world, only very few of them have become major Forex trading elements. Let us take a look at 5 international currencies that are dominating the International markets and are traded most on Forex trading platforms:
The US Dollar
The US dollar, hands down, is the most traded currency on the planet Earth. Today, the currency is held by almost all central banks in the world.
Because of such immense ubiquity, the US dollar sometimes serves as a benchmark currency on the Forex market. This can help great deal in measuring the value of a particular transaction.
Moreover, the US dollar is used as an accepted currency for commodities, such as oil and gold. This makes it all the more important.
The Euro
Introduced to the World’s markets in 1999, Euro has become the second most tradable currency. Over the years, it has become the official currency of countries in the Eurozone, such as France, Netherlands, Italy, Germany, etc.
With such significance, it is also a very popular currency on the Forex market. Most times, the currency is traded keeping the day-to-day situations of Eurozone members at the forefront.
The Japanese Yen
The Japanese Yen owes its recent popularity to its thriving manufacturing and exports economy.
Forex traders trade on Yen depending on the situation in the Pan-Pacific regions. This currency is also referred to as the ‘carry trade’ in the Forex landscape. Through the 1990s and start of 2000s, the Japanese Yen could be borrowed at zero interest rates. This made it a popular currency both at the Forex level and at the International level.
The Great British Pound
Also referred to as pound sterling, the great British Pound is an important international currency. Generally, the Forex traders determine its value from the strength of the UK’s economy and political stability. It serves as a very crucial liquid component in the Forex market.
The Swiss Franc
Just like Switzerland as a country is considered neutral, its currency is no different. In fact, for Forex traders, it is a safe choice. Moreover, it has been known that the Swiss National Bank intervenes to make sure that Franc’s trades are tight-range, minimizing volatility and keeping interest rates in check.
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