Forex trading is dominated by U.S. Dollars (USD), Euros and British Pounds. Major currency pairs in the world are known simply as “majors”. Forex traders look for opportunities extra resources in less-traded currencies, like the Singaporean USD or Malaysian Ringgitt. These currencies may be viable and profitable alternatives to major currencies.
Different currencies carry different risks. Singapore’s reputation is for strong fiscal policy as well its large foreign exchange reserves. Singapore’s strong economy and educated workforce has made it an international success story. The currency of Singapore has seen a steady increase in its value. Not to forget that Singapore’s economy is dependent on international trade. A global downturn could cause serious damage. When the global financial crisis struck, 2008 saw a severe contraction of Singapore’s economic sector. This led to the Singaporean dollar losing its value.
Forex traders love the Malaysian Ringgit currency. Malaysia has enjoyed a remarkable rise in its economic activity over the past few decades. Malaysia is an exporter-oriented state with a strong domestic market that is capable of absorbing some volatility on the international market. Malaysia is more stable and secure than most of its neighbors. Because of its oil wealth, the country has been able to finance state finances. This is why the Malaysian Ringgit deserves to be looked at.
Recent years have seen the Brazilian Real become a highly sought-after commodity. Since 2003 the value of the Brazilian Real has increased more than twice as much against the U.S. dollars. Brazil has been Latin America’s economic engine. Brazilians have a more inwardly oriented economy than their dependence on foreign trade. The Brazilian economy is more resilient to recessions. Brazil’s attractiveness is increasing due to its high levels of uncertainty on the global market. Brazil’s economy has been slowing in recent years. Analysts believe that the Real is undervalued.