FXOpen created a world currency ranking list. Since the list of the world’s top ten currencies constantly changes, we’ve gathered the most recent data for 2023.
🔸US Dollar (USD)
USD is the legal tender of the United States and some other countries, where it serves as an official currency. It is recognised as the world’s reserve currency. The US dollar is a leading currency in terms of trading volume. EUR/USD is the most traded currency pair in the forex market.
The euro appeared in 1999 as a single currency that was designed to be used across all countries of the European Union.
The rate of the euro is influenced by the economic policies of the ECB (European Central Bank), inflation rates, and changes in GDP. One more factor is export volume. If exports from the major EU producers like Germany and France grow, the demand for the euro will grow as well.
🔸Japanese Yen (JPY)
The Japanese yen has one of the most stable values across all currencies and is the most traded Asian currency. Japan is highly innovative and pays attention to scientific research to move into new sectors of the economy.
🔸Pound Sterling (GBP)
The pound sterling is the official currency of the UK and the British Overseas Territories. Traders usually estimate the value of the British pound based on the strength of the UK economy, including the inflation rate in the UK, the policy of the Bank of England, the state balance of payments (also known as international payments balance), and market sentiment based on the country’s and global political stability.
The Chinese renminbi (RMB) is the official name of China’s currency.
China has the second-largest population in the world and a strong and well-developed economy. The balance of exports and imports and natural resource prices significantly impact China's economy.
🔸Australian Dollar (AUD)
The Australian dollar is one of the most influential currencies of the Asia-Pacific region. It is also called Aussie. The AUD is the leading commodity currency, meaning that its value is affected by changing prices for natural resources and Australia’s export goods. The strength and popularity of the AUD are supported by the stable government system in place over the past years.
🔸Canadian Dollar (CAD)
The Canadian dollar, often called Loonie, is the domestic currency of Canada. Just like the AUD, the Canadian dollar is a commodity currency – its rate moves in step with crude oil, precious metals, and minerals markets as these commodities have a great share in Canada’s overall exports.
🔸Swiss Franc (CHF)
The Swiss franc is the world’s safest currency. The popularity of the Swiss franc stems from its status as a safe-haven asset. Forex traders are aware of the strong economy of Switzerland and often choose its currency to keep their money safe during periods of market turbulence.
🔸Hong Kong Dollar (HKD)
HKD is the currency of Hong Kong. Even though the Hong Kong dollar is a freely convertible currency, its exchange rate against the US dollar is strictly regulated. The HKD is pegged to the US dollar with upper and lower limits, HK$7.75 to HK$7.85 per US dollar, which makes it stable.
🔸Singapore Dollar (SGD)
The currency of the Republic of Singapore, the Singapore dollar, is a highly valued currency compared to others in the Asia-Pacific region. The Singapore authorities place a serious emphasis on maintaining the stability of the currency, which makes it attractive to traders. This is why the Monetary Authority of Singapore constantly monitors international exchange rates.
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