The Most Traded Currencies in the World

The global foreign exchange (Forex) market is the largest and most liquid financial market in the world, with trillions of dollars changing hands every day. At the heart of this market are a handful of dominant currencies that facilitate international trade and investment.

1. The US Dollar (USD)

Accounting for nearly 88% of all daily Forex trades, the US Dollar is the undisputed king of global finance. It serves as the primary global reserve currency, the main medium for pricing commodities like oil and gold, and the standard benchmark for currency valuations worldwide.

2. The Euro (EUR)

Representing the 20 member states of the Eurozone, the Euro is the second most traded currency, involved in approximately 31% of transactions. The Euro provides high liquidity and represents a unified economic bloc with one of the highest GDPs globally.

3. The Japanese Yen (JPY)

The Japanese Yen holds the third spot, trading in about 17% of transactions. Renowned as a 'safe-haven' asset, investors frequently turn to the Yen during times of geopolitical or macroeconomic uncertainty due to Japan's stable trade surpluses.

Other Major Currencies

The list of highly traded currencies is rounded out by the British Pound (GBP), the Australian Dollar (AUD), and the Canadian Dollar (CAD), each reflecting strong resource integration or historical financial influence.