Forex trading has been dominated over the U.S. dollars (USD), Euro and British Pounds (GBP), Japanese Yuen (JPY), as well as other “majors”, global currencies. Major currency pairs are often called “majors” in reality. Forex traders are now looking link for opportunities with less traded currencies like the Singaporean USD or the Malaysian Ringgitt. These currencies are viable and profitable alternatives for major currencies.
Different currencies come with different risk levels. Singapore’s government has a reputation of having strong fiscal policies and large foreign currency reserves. Singapore’s growing economy and educated workforce have made it a success over the years. The currency of Singapore has grown in value because of this. It’s important that Singapore remains heavily dependent on international trade. Global downturns are likely to cause significant damage. When the global financial crises hit in 2008, Singapore’s economy experienced a significant contraction, which resulted in the Singapore dollar losing its value.
Forex traders have become increasingly fond of Malaysian Ringgit currency in recent years. Malaysia has seen a remarkable rise in its economy in recent decades. This is similar to Singapore. Malaysia is an exporter-oriented state with a large market that is able absorb some market volatility. Malaysia is more stable that its neighbors. The oil wealth of the country has helped to fund the state’s coffers. This makes Malaysian Ringgit a worthwhile investment.
In recent times, the Brazilian Real became a highly sought-after commodity. Since 2003, more than two-thirds of the Real’s worth has been converted to dollars. Brazil is Latin America’s economic engine. Brazil’s economy is more inwardly-focused than its dependence to exports. This makes it more resilient in times of downturns. Brazil is increasingly attractive due to its high degree of uncertainty across global markets. Brazil’s economy has seen a slowdown in recent years. Analysts now believe that the Real’s value is too high.