Question

The most commonly traded currency in foreign exchange markets is the

euro

US Dollar

British pound

Chinese yuan

Answer 1

The Global Foreign Exchange market being so large and attractive is only growing every year. Large financial institutions and dealers buy and sell a huge amount of different currencies . And among them, the most actively traded is the US dollar.

All the important commodities in the global market are traded in US Dollar. Most of the international transactions between countries and companies are conducted in dollars. It also remains the dominant reserve currency for central banks and many institutional funds worldwide.

Such a high demand makes the US dollar the number one among currencies in the Forex market, followed by the Euro, Japanese yen, Pound sterling and Chinese Yuan.

Thus the most commonly traded currency in the foreign exchange market is the US Dollar.