Top 10 Most Traded Currencies in 2025 (Global Demand & INR Impact)

The foreign exchange market (forex) remains the largest and most liquid financial market in the world in 2025, with over $7.5 trillion in daily transactions. This colossal market is driven primarily by a few major currencies that dominate global trade, finance, and investment. For India, these globally traded currencies are not just theoretical metrics—they have a direct influence on import-export pricing, capital flows, and the value of the Indian Rupee (INR).

This article explores the ten most traded currencies in 2025, delving into the reasons for their dominance and examining how each one affects India’s economy.

Most Traded Currencies & INR Impact (2025)

1. United States Dollar (USD)

The World’s Anchor Currency

The USD continues to be the most dominant and widely traded currency in the global market. As of 2025, it is involved in over 88% of all forex transactions. This is largely due to the size of the U.S. economy, the dominance of American financial markets, and the use of the dollar as the world’s primary reserve currency.

INR Impact

The USD/INR exchange rate is the most actively traded currency pair in India. Fluctuations in this rate have direct implications on:

• Oil prices (since crude is priced in USD)

• Inflation levels (through import costs)

• Foreign investment inflows

Even minor shifts in the dollar’s strength can impact India’s trade deficit and monetary policy decisions.

2. Euro (EUR)

The Unified European Power

The Euro is the second-most traded currency globally, comprising about 30% of forex transactions. Backed by the Eurozone economy, the Euro benefits from the economic clout of countries like Germany, France, and Italy.

INR Impact

The EUR/INR pair significantly affects India’s:

• Exports to the European Union, including pharmaceuticals and textiles

• Imports of machinery, technology, and automobiles

The strength or weakness of the Euro can alter India’s competitiveness in European markets.

3. Japanese Yen (JPY)

The Safe-Haven Currency of Asia

The Japanese Yen remains one of the most preferred currencies in times of global uncertainty, often regarded as a safe-haven asset. Japan’s consistent trade surpluses, stable government, and strong manufacturing base support its value in international trade.

INR Impact

India’s trade relations with Japan, particularly in areas like:

• Technology imports

• Automotive components

• Infrastructure financing

…make the JPY/INR rate a significant one. The Yen’s role in developmental aid and investment in Indian infrastructure also contributes to capital inflow sensitivity.

4. British Pound Sterling (GBP)

A Legacy of Financial Power

The GBP is known for its historical importance and its continued role as a major global reserve and trading currency. The UK’s financial markets, especially London’s forex hub, support its strong position.

INR Impact

A strong GBP/INR exchange rate influences:

• Higher education costs for Indian students in the UK

• Remittance flows from the Indian diaspora

• Trade in luxury goods, pharmaceuticals, and financial services

5. Chinese Yuan Renminbi (CNY)

The Rising Eastern Power

The Chinese Yuan, particularly its offshore version (CNH), has been climbing in global relevance. China’s push for internationalizing the Yuan, along with the Belt and Road Initiative, has brought the CNY into wider use for trade settlements and reserves.

INR Impact

China is one of India’s largest trading partners. Thus, the CNY/INR rate influences:

• Electronics and machinery imports

• Bilateral trade deficits

• Geopolitical dynamics in trade negotiations

6. Swiss Franc (CHF)

The Stable Store of Value

The Swiss Franc is considered one of the most stable and trusted currencies in the world. Switzerland’s strong banking sector and neutral political stance make CHF highly attractive during times of volatility.

INR Impact

India’s interaction with the CHF includes:

• Foreign reserves allocation

• Wealth management

• Financial consulting and advisory services

While trade volume is smaller, CHF’s role in investment safety makes it important in foreign reserve diversification.

7. Canadian Dollar (CAD)

The Commodity Currency

The Canadian Dollar often reflects commodity prices, particularly oil and natural gas. Canada’s stable economy and proximity to the U.S. market enhance its forex prominence.

INR Impact

India imports fertilizers, lumber, and pulses from Canada. A strong CAD can:

• Increase import costs

• Affect bilateral trade agreements

• Influence remittances from the Indian community in Canada

8. Australian Dollar (AUD)

Asia-Pacific’s Commodity Giant

The AUD is another commodity-linked currency, heavily influenced by China’s economic performance and global demand for raw materials like iron ore and coal.

INR Impact

The AUD/INR exchange rate plays a role in:

• Educational expenses for Indian students in Australia

• Tourism and visa-related costs

• Trade in metals and agricultural products

9. Singapore Dollar (SGD)

Asia’s Financial Gateway

The Singapore Dollar holds its strength due to Singapore’s status as a financial and trading hub in Southeast Asia. Known for economic stability and low corruption, the SGD is trusted in both regional and international transactions.

INR Impact

Singapore is a significant investor in India, especially in:

• Startups and fintech

• Real estate and logistics

• Banking and offshore funds

SGD/INR rates affect investment inflows and business travel costs.

10. Hong Kong Dollar (HKD)

The Semi-Autonomous Trade Giant

Though technically linked to the USD via a currency peg, the Hong Kong Dollar remains an important currency in Asia due to Hong Kong’s international finance ecosystem.

INR Impact

Hong Kong serves as a gateway for Chinese capital and hosts several Indian business operations. The HKD/INR rate influences:

• Capital market movements

• Export-import invoicing

• Retail and luxury brand costs