Profile of the Major Currencies
Monday, October 16th, 2006
U.S. Dollar (USD):
- World’s foremost reserve currency – used as a universal measure to compare values of any currency traded on Forex, but euro is a strong candidate to displace the dollar as the predominant reserve currency.
- Many of world’s currencies pegged against the dollar e.g. Chinese renminbi and Malaysian Ringgit until July 2005.
- Safe haven currency during international economic and political unrests (e.g. 1997/98 Southeast Asian Economic Crisis).