- Published: October 1, 2022
- Updated: October 1, 2022
- University / College: Macquarie University
- Level: Secondary School
- Language: English
- Downloads: 27
Top five currencies in the world’s bond’s market al affiliation Top five currencies in the world’s bond’s market There has been a wide range of fluctuation in the World’s Bond’s Market resulting from change in the value of currencies. Investors and traders keenly observe trends in the bond market in order to identify the most traded currency in world (N. A, 2014). The most traded and top five currencies in the world are as follows:
1) The U. S. Dollar (USD)
The U. S. dollar is the most prominent and highly traded currency in the world, instituted as the international currency after the World War II. Created by the Federal Reserve System, the U. S. dollar is usually used the trade benchmark currency against all other major world’s currencies including the Euro, Japanese Yen , and British pound.
2) The European Euro (EUR)
The Euro is a currency used by 17 member countries within the Eurozone. The European Central Bank is the central bank for the joint Eurozone countries. According to forex traders, the euro can trade in between 30 to 40 pips on average, albeit prone to changes in the bond market. Today, 1 Euro is equivalent to U. S. $ 1. 36.
3) The Japanese Yen (JPY)
Established in 1882, the Bank of Japan controls the second largest economy in the world. The Japanese Yen has become popular in less developed economies in Asia such as Vietnam, North Korea, Cambodia, and Laos. As a result of the growing Japanese economy, the Yen has drastically improved; 1Japanse Yen is equivalent to 0. 0098 U. S. dollar.
4) The British Pound (GBP)
The British Pound, Queen’s currency, is controlled by the Bank of England. Until the World War, the British Pound had been the most traded currency in the world. On the contrary, the currency now exchanges with the U. S dollar at $ 1. 70.
5) The Swiss Franc (CHF)
The Swiss Franc is served by the Swiss National Bank, with both public and private ownership. According to forex trading reports, one U. S. dollar was equivalent to 5 francs back in 1994. Today, 1FR exchanges as U. S. $ 1. 12.
Reference
N. A. (2014). Currencies: Foreign exchange. The New York Times, 1-2.
