Forex trading has always been dominated by the U.S. Dollar (USD), Euro, British Pound (GBP), Japanese Yen (JPY) and other “majors” global currencies. Major currency pairs are known as “majors” in fact. Forex traders are now seeking opportunities in less traded currencies, such as the Malaysian Ringgitt or the Singaporean Dollar. These currencies can be viable and lucrative alternatives for the major currencies, click here to know more about the author.
Different currencies have different levels of risk. Singapore’s government has a reputation for having a strong fiscal policy and large foreign currency reserves. Singapore’s booming economy and highly educated workforce have made it a success story in recent years. Because of this, its currency has been growing in value. But it’s important to remember that Singapore is heavily dependent upon international trade. Therefore, global downturns have the potential of causing severe damage. Singapore’s economy suffered a significant contraction in 2008, when the global financial crisis hit, and this led to the Singapore dollar losing its value.
The Malaysian Ringgit is a currency that has become very popular with Forex traders in recent times. Malaysia has seen a tremendous rise in its economy over the past several decades, much like Singapore. Malaysia is an exporter-oriented country with a large domestic market which is able to absorb some global market volatility. Malaysia is a more stable country than its neighbors. The nation’s oil wealth has helped fund the state’s coffers. This makes the Malaysian Ringgit well worth looking at.
The Brazilian Real has become a very hot commodity in recent times. The Real’s value has more than doubled against the U.S. dollar since 2003. Brazil has been the economic engine of Latin America. The Brazilian economy is more inwardly focused than its dependence on exports. This makes it more resilient to downturns. Brazil is increasingly attractive because of the high level of uncertainty on global markets. It should be noted that Brazil’s economic growth has slowed in recent years. Analysts now believe the Real is overvalued.