A Comparative Study on Selected Foreign Currencies

Hundreds of thousands of people haveto deal with foreign currency exchange every day, including expatriates, holidaymakers, professionals on businesses trips and companies with international dealings.There are nearly 200 currencies in circulation globally, but thevast majorityof foreign currency exchange trades involve a comparatively small proportion of them.The most commonly traded currencies are known as the „majors". The major currencies include Pound Sterling, the US Dollar, the Canadian Dollar, the Euro, the Australian Dollar, the New Zealand Dollar, the South African Rand, the Swiss France and the Japanese Yen. Foreign exchange is the trading of different national currencies or units of account. It is important because the exchange rate, the price of one currency in terms of another, helps to determine a nation"s economic health and hence the well-being of all the people residing in it. The exchange rate is also important because it can help or hurt specific interests within a country: exporters tend to be helped (hurt) by a weak (strong) domestic