TEMPO.CO, Jakarta – It’s not uncommon for investors to diversify their portfolios, and one of the smartest ways to do this is by investing in foreign currencies. However, with dozens of currencies available worldwide, choosing the best one to invest in can be challenging.
Reputable sources like Investopedia and FXSSI consider the U.S. Dollar and the Euro are among the best currencies to invest in. These currencies are favored for their stability, liquidity, and widespread acceptance in global markets.
What Is the Best Currency to Invest In?
While many currencies have strong reputations, here are the top five picks for 2025 that stand out:
1. U.S. Dollar
Central Bank: U.S. Federal Reserve
First introduced in 1913, the U.S. dollar is widely recognized as the best currency to invest in. As of 2019, 90% of global forex transactions involved USD, highlighting its dominant role in international finance. The dollar has also firmly maintained its position as the world’s primary reserve currency. Primarily, its strengths lie in the economic power of the United States, high liquidity, and its central role in global trade.
2. Euro
Central Bank: European Central Bank (ECB)
The Euro is considered a relatively slower-moving currency against USD, especially when compared to the British Pound or Australian Dollar. Despite occasional economic and political challenges within the Eurozone, the ECB reported in 2024 that the Euro’s share across various indicators of international currency use remained stable at around 19%. This continued relevance can be attributed to several factors, including the strong legal and policy framework maintained by the ECB and the European Union.
3. Japanese Yen
Central Bank: Bank of Japan (BoJ)
With Japan ranked among the strongest nations in the world, its currency, Yen, remains a favored investment instrument. First established in 1882, the yen is supported by Japan’s robust economy, its limited dependence on the U.S. dollar, and a consistent trade surplus driven by strong global demand for Japanese goods. Amid global uncertainty, the yen has also maintained a stable range of ¥140–145 per USD, despite weakening to a 38-year low in late 2024.
4. British Pound
Central Bank: Bank of England (BoE)
The British Pound Sterling is the oldest currency still in use. Post-Brexit, the UK’s economy is adapting to new trade relationships, but the pound remains a strong contender due to the BoE playing an active role in international economic developments.
5. Swiss Franc
Central Bank: Swiss National Bank (SNB)
Swiss Franc has long been a top contender when it comes to the best currency to invest in. Backed by Switzerland’s robust and stable economy, the Swiss Franc is widely regarded as a safe-haven currency during turbulent times. However, Swissinfo points out that its strong exchange rate can sometimes be a double-edged sword, as a high currency value occasionally hurts the country’s export sector.
Choosing the best currency to invest in depends on your investment goals, risk tolerance, and market conditions. The USD, Euro, Japanese Yen, British Pound, and Swiss Franc remain top picks for 2025 due to their stability, liquidity, and global influence.
If you’re looking for more options to diversify your portfolio, let’s take a look at the best investments for 2025.
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