Forex is a huge global market with daily trading volumes estimated to be trillions.

Interestingly, these volumes have continued to rise incrementally, despite the global financial crisis and the fact that rampant inflation has devalued major, minor and exotic currenciesthroughout the world.

In this post, we’ll explore why this may be the case, while looking at a selection of the best fiat currencies and pairs in the current economic climate!

Why are Fiat Currencies Still Attractive?

In many ways, it appears completely counterintuitive that fiat currencies should remain popular among investors at a time when their corporeal value and purchasing power is being continually devalued.

However, the FX market is a unique entity, aswell as a speculative investment asset that can be traded without assuming ownership of the underlying financial instrument. This means that traders are naturally less concerned with fluctuating valuations, as they won’t be lumbered with this if the market crashes.

For most international currencies, the values are set in real-time by a free-floating exchange rate. This is vulnerable to numerous macroeconomic and geopolitical factors, which in turns creates marked price volatility that can be leveraged in some instances by investors.

Such price shifts may be particularly marked during an inflationary recession, creating more volatility and opportunities for traders to profit through speculative investments.

What are the Best Currencies to Invest In?

If you were to liaise with the world’s leading wealth managers, you’d know that investing in currency is an excellent way to leverage short-term profits as part of a much broader and more diverse portfolio.

But which currencies are the best to invest in at present? Here are three to keep in mind!