Since long, the U.S. has dominated source Forex trading. American Dollars, British Pounds and Euros. Japanese Yens. In reality, these major currency pairs are known as “majors”. Trades in less-traded currencies, such as the Malaysian Ringgitt or Singaporean Dollar, are being explored by forex traders. These currencies offer more opportunities for profit than trading in the main currencies.
Risk levels are varied for different currencies. Singapore’s excellent fiscal policies are well-known. It also has large foreign reserves. Recent years have seen Singapore experience unprecedented growth and a highly educated population. Singapore’s currency has a rising value. Singapore’s economy relies on international trade. It is possible for Singapore to be severely affected by global downturns. The 2008 global financial crisis caused a decline in Singapore’s economy of more than 1%. It also led to a decline in the value Singapore dollar.
Forex traders found the Malaysian Ringgit an attractive currency in recent years. Malaysia’s growth has been phenomenal, much like Singapore’s in the past decade. Malaysia, although an export-oriented country, has an important domestic market which is capable of absorbing some of the changes in international markets. Malaysia, unlike its neighbours, is economically and politically stable. It is because of its oil wealth. The Malaysian Ringgit is worth looking at because of these conditions.
Brazilian Real has been a highly-preferred commodity over the past few years. In 2003, the Real was almost worth twice as much than U.S. dollar. Brazil has become the Latin America’s largest economy. Brazilian investors are more likely to be able to weather global downturns due in part because the economy of Brazil is more internally focused than it depends on exports. Because of the uncertainties on global markets, Brazil is increasingly attractive. Brazil’s economy is experiencing a slowdown over the past few years. Many analysts believe that the Real is overvalued.
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