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.
| Rank | Currency | Country/Region | Trade Share | INR Impact |
|---|---|---|---|---|
| 1 | USD | United States | 88% | Oil prices, inflation, FDI |
| 2 | EUR | Eurozone | 30% | Pharma, auto imports, exports |
| 3 | JPY | Japan | 17% | Tech imports, investments |
| 4 | GBP | United Kingdom | 13% | Education, remittances, services |
| 5 | CNY | China | 7% | Electronics, trade deficit |
| 6 | CHF | Switzerland | 6% | Reserves, financial security |
| 7 | CAD | Canada | 5% | Commodities, immigration, remittances |
| 8 | AUD | Australia | 4% | Education, raw materials |
| 9 | SGD | Singapore | 4% | Investments, fintech, trade hub |
| 10 | HKD | Hong Kong | 3% | Trade conduit, capital markets |
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.
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.
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.
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.
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.
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.
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.
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
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.
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
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.
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.
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.
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
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.
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
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.
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.
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.
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
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