ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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US Dollar
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Malaysian Ringgit
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Euro
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Yuan
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Detailed explanation-1: -US dollar (USD) Euro (EUR) 3. Japanese yen (JPY) British pound sterling (GBP) Chinese renminbi (CNH) Australian dollar (AUD) Canadian dollar (CAD) Swiss franc (CHF) More items •02-Feb-2023
Detailed explanation-2: -US dollar (USD) The US dollar is by far the most traded currency in the forex market, with a global daily average trading volume of about $6.6 trillion.
Detailed explanation-3: -Firstly, the US is the world’s largest economy and a powerhouse in international trade. Secondly, the US dollar is the world’s primary ‘reserve currency’, held by central and commercial banks for the purposes of international transactions and investment – estimated to make up nearly 63% of currency reserves by volume.
Detailed explanation-4: -US dollar (USD) It is the number one most traded currency globally, accounting for a daily average volume of US$2.9 trillion.
Detailed explanation-5: -Such a high demand makes the US dollar the number one among currencies in the forex market, followed by the Euro, Japanese yen, and Pound sterling. These leaders are represented in the most traded pairs in the forex: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF and their combinations.