A graphic that displays the dollar performance against other currencies reveals that economic developments had mixed results on currency exchanges. The third quarter of 2023 marked a period of disinflation in the euro area, while China's projected growth was projected to go up. The United States economy was said to have a relatively strong performance in Q3 2023, although growing capital market interest rate and the resumption of student loan repayments might dampen this growth at the end of 2023. A relatively weak Japanese yen Q3 2023 saw pressure from investors towards Japanese authorities on how they would respond to the situation surrounding the Japanese yen. The USD/JPY rate was close to ***, whereas analysts suspected it should be around ** given the country's purchase power parity. The main reason for this disparity is said to be the differences in central bank interest rates between the United States, the euro area, and Japan. Any future aggressive changes from, especially the U.S. Fed might lower those differences. Financial markets responded somewhat disappoint when Japan did not announce major plans to tackle the situation. Potential rent decreases in 2024 Central bank rates peak in 2023, although it is expected that some of these will decline in early 2024. That said, analysts expect overall policies will remain restrictive. For example, the Bank of England's interest rate remained unchanged at **** percent in Q3 2023. It is believed the United Kingdom's central bank will ease its interest rate in 2024 but less than either the U.S. Fed or the European Central Bank. This should be a positive development for the pound compared to either the euro or the dollar.

One United States dollar was worth over ****** Indonesian rupiah in May 2024, the highest value in a comparison of over 50 different currencies worldwide. All countries and territories shown here are based on the Big Mac Index - a measurement of how much a single Big Mac is worth across different areas in the world. This exchange rate comparison reveals a strong position of the dollar in Asia and Latin America. Note, though, that several of the top currencies shown here do not rank among the most traded. The quarterly U.S. dollar exchange rate against the ten biggest forex currencies only contains the Korean won and the Japanese yen.

The DXY exchange rate fell to 97.6499 on September 1, 2025, down 0.12% from the previous session. Over the past month, the United States Dollar has weakened 1.15%, and is down by 3.95% over the last 12 months. United States Dollar - values, historical data, forecasts and news - updated on September of 2025.

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is forecast to increase by USD 582 billion, at a CAGR of 10.6% between 2024 and 2029.

Major Market Trends & Insights

Europe dominated the market and accounted for a 47% growth during the forecast period.
By the Type - Reporting dealers segment was valued at USD 278.60 billion in 2023
By the Trade Finance Instruments - Currency swaps segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 118.14 billion
Market Future Opportunities: USD 582.00 billion 
CAGR : 10.6%
Europe: Largest market in 2023

Market Summary

The Foreign Exchange (Forex) market, a global financial platform for exchanging one currency for another, is a dynamic and continuously evolving ecosystem. According to the Bank for International Settlements, daily trading volumes reached approximately USD6 trillion in April 2020, representing a significant portion of the world's financial transactions. This market's importance is underscored by its role in facilitating international trade, investment, and tourism. The Forex market's decentralized nature allows for 24/7 trading opportunities, making it an attractive proposition for businesses and investors seeking to manage currency risk or capitalize on price fluctuations. Despite the market's complexity, advanced technologies, such as machine learning and artificial intelligence, are increasingly being adopted to enhance trading strategies and improve risk management.
One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. These tools enable real-time analysis of market trends and help forecast exchange rates, providing valuable insights for businesses operating in multiple currencies. The Forex market's influence extends beyond traditional financial sectors, with applications in various industries, including tourism, import/export, and international business. As businesses expand their global footprint and economies continue to interconnect, the role and significance of the Forex market are set to grow further.

What will be the Size of the Foreign Exchange Market during the forecast period?

Explore market size, adoption trends, and growth potential for foreign exchange market Request Free Sample

The market, a vital component of the global financial system, operates without fail, facilitating the conversion of one currency into another. According to recent data, approximately 6% of daily global trading volume is attributed to this market. Looking ahead, growth is projected to reach over 5% annually. Consider the following comparison: the average daily trading volume in the forex market exceeds that of the New York Stock Exchange by a significant margin. In 2020, the former recorded around USD 6 trillion, while the latter saw approximately USD 136 billion. This disparity underscores the market's immense scale and influence.
Moreover, the forex market's liquidity depth enables efficient price discovery, minimizing transaction security concerns and market impact costs. Automated trading bots and order book depth analysis are essential tools for market participants, allowing for effective backtesting strategies and fraud detection systems. Leverage ratios, transaction fees, and margin requirements are essential factors influencing market accessibility and profitability. High-frequency trading and the presence of liquidity providers contribute to market efficiency and statistical arbitrage opportunities. Regulatory compliance and brokerage services further ensure a secure trading environment. Despite payment processing fees and order flow imbalance, risk tolerance levels remain a crucial consideration for participants.

How is this Foreign Exchange Industry segmented?

The foreign exchange industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Reporting dealers
  Financial institutions
  Non-financial customers


Trade Finance Instruments

  Currency swaps
  Outright forward and FX swaps
  FX options


Trading Platforms

  Electronic Trading
  Over-the-Counter (OTC)
  Mobile Trading


Geography

  North America

    US
    Canada


  Europe

    Germany
    Switzerland
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period.

The market is a dynamic and intricate financial ecosystem where businesses and investors transact in various currencies to manage internationa

The EUR/USD exchange rate rose to 1.1708 on September 1, 2025, up 0.21% from the previous session. Over the past month, the Euro US Dollar Exchange Rate - EUR/USD has strengthened 1.07%, and is up by 5.79% over the last 12 months. Euro US Dollar Exchange Rate - EUR/USD - values, historical data, forecasts and news - updated on September of 2025.

The USD/BRL exchange rate rose to 5.4445 on September 1, 2025, up 0.27% from the previous session. Over the past month, the Brazilian Real has strengthened 0.97%, and is up by 3.06% over the last 12 months. Brazilian Real - values, historical data, forecasts and news - updated on September of 2025.

The euro-to-dollar exchange rate fluctuated significantly in 2022, reaching its lowest recorded value since 2008 during that time. Figures were different later in the year, however, with a rate of 1.16 USD recorded at the end of August 27, 2025. The average (standardized) measure is based on the calculation of many observations throughout the period in question. It is therefore different from an annual measure at a point, which reflects concrete values as of end of the year.EstablishmentThe euro, which was established in 1992, introduced in non-physical form in 1999 and finally rolled out in 2002, is used by 19 of the 27 member states of the European Union. This group of countries is otherwise known as the eurozone or euro area. By 2018, the total value of euro currency in circulation was almost 1.2 trillion euros, or over 3.4 thousand euros per capita.Euro to USDBetween 2001 and 2008, the average annual exchange rate of the euro to the U.S. dollar noted a steep increase. In 2008, the euro to U.S. dollar annual average exchange rate was equal to 1.47, which meant that one euro could buy 1.47 U.S. dollars. By 2019, this value had decreased overall, to a value of 1.12 which meant that one euro could buy 1.12 U.S. dollars. Similar dynamics in the euro to U.S. dollar exchange rate were also reflected in the monthly exchange rate recently.

The USD/MXN exchange rate rose to 18.7639 on September 2, 2025, up 0.61% from the previous session. Over the past month, the Mexican Peso has strengthened 0.64%, and is up by 5.23% over the last 12 months. Mexican Peso - values, historical data, forecasts and news - updated on September of 2025.

One dollar was worth about ** Mexican pesos in the middle of 2024, which was stronger than other currencies in LATAM. Among the Latin American currencies shown in this graph, the Colombian peso (COP) was found to experience the greatest nominal change in the indicated period, surpassing the mark of ***** Colombian pesos for every U.S. dollar in June 2024.

The USD/EGP exchange rate fell to 48.5200 on September 2, 2025, down 0.03% from the previous session. Over the past month, the Egyptian Pound has strengthened 0.16%, but it's down by 0.14% over the last 12 months. Egyptian Pound - values, historical data, forecasts and news - updated on September of 2025.

The USD/CNY exchange rate rose to 7.1389 on September 2, 2025, up 0.08% from the previous session. Over the past month, the Chinese Yuan has strengthened 0.58%, but it's down by 0.29% over the last 12 months. Chinese Yuan - values, historical data, forecasts and news - updated on September of 2025.

The Euro to Australian exchange rate history reveals a peak in March 2020 before declining well until mid-2022. Exchange rates fluctuate against each other constantly. As of August 20, 2025, the exchange rate was valued at 1.8 Australian dollars per euro. The rate at which one currency performs against another depends on the demand that it generates at any given time. Exchange rates are affected by several factors, including international trade, tourism, and geopolitical tensions.Euro gains strength against the Brexit PoundOne good example of geopolitical risks negatively impacting the strength of a currency is to look at the British Pound post Brexit referendum. The average annual exchange rate of the Euro to GBP increased significantly between 2015 and 2018.The Euro vs. the worldSince 2016, the euro has performed well against various other currencies. The Euro to U.S. dollar had seen its annual average exchange rate increase by 0.07 between 2016 and 2018, after slightly decreasing in 2019. Against the Indian Rupee, the Euro had performed even better, with the average annual exchange rate equaling 78.84 in 2019.

The USD/VND exchange rate was unchanged at 26,345.0000 on September 1, 2025. Over the past month, the Vietnamese Dong has weakened 0.48%, and is down by 5.97% over the last 12 months. Vietnamese Dong - values, historical data, forecasts and news - updated on September of 2025.

The USD/JPY exchange rate rose to 146.9530 on August 29, 2025, up 0.22% from the previous session. Over the past month, the Japanese Yen has strengthened 1.52%, but it's down by 0.54% over the last 12 months. Japanese Yen - values, historical data, forecasts and news - updated on August of 2025.

The euro and U.S. dollar made up more than ***** of 10 SWIFT payments worldwide in 2025, outperforming many other currencies. This is according to a monthly report meant to track the market share of China's yuan renminbi within the international bank transfer system SWIFT. Although China holds the largest forex reserves in the world, the yuan ranked as the ******-used currency in international payments. The figures concern customer-initiated and institutional payments and exclude trade. Discussions on the potential weakening role of the U.S. dollar especially touch world trade and forex. For example, the share of the USD in forex reserves declined visibly against the euro and Japanese yen in 2024. What sparked this de-dollarization trend, and will it continue? Trade sanctions and de-dollarization De-dollarization in 2024 is mentioned mostly alongside trade and the BRICS countries - an informal name given to Brazil, Russia, India, China, and South Africa. The combined GDP of BRICS is about ** percent of the world's economy. After the start of the Ukraine war and Russia received economic sanctions, the BRICS slowly evolved into a trading bloc. The group increasingly wanted its own currency to settle payments within the trade bloc, to avoid using the U.S. dollar. In August 2024, BRICS will gather in South Africa to discuss the creation of such a new joint currency. Additionally, ** countries - including Argentina, Algeria, Egypt, Saudi Arabia, Turkey, and Yemen - expressed interest in joining the BRICS group. CBDC, or projects into a digital payment settlement A factor of future uncertainty for the U.S. dollar is how central bank digital currencies (CBDC) develop in emerging countries. Several projects exist between individual countries that specifically target cross-border interbank payments. A cooperation between Thailand and Hong Kong, Inthanon-Lionrock, ranks as the most advanced of these projects. CBDC does not require the U.S. dollar to function. Tangible such as commodities or gold can back them. The value of transactions processed with CBDC is to grow by ******* percent between 2024 and 2030.

The US dollar index of February 2025 was higher than it was in 2024, although below the peak in late 2022. This reveals itself in a historical graphic on the past 50 years, measuring the relative strength of the U.S. dollar. This metric is different from other FX graphics that compare the U.S. dollar against other currencies. By July 15, 2025, the DXY index was around 98.01 points. The history of the DXY Index The index shown here – often referred to with the code DXY, or USDX – measures the value of the U.S. dollar compared to a basket of six other foreign currencies. This basket includes the euro, the Swiss franc, the Japanese yen, the Canadian dollar, the British pound, and the Swedish króna. The index was created in 1973, after the arrival of the petrodollar and the dissolution of the Bretton Woods Agreement. Today, most of these currencies remain connected to the United States' largest trade partners. The relevance of the DXY Index The index focuses on trade and the strength of the U.S. dollar against specific currencies. It less on inflation or devaluation, which is measured in alternative metrics like the Big Mac Index. Indeed, as the methodology behind the DXY Index has only been updated once – when the euro arrived in 1999 – some argue this composition is not accurate to the current state of the world. The price development of the U.S. dollar affects many things, including commodity prices in general.

The GBP/USD exchange rate fell to 1.3539 on September 2, 2025, down 0.05% from the previous session. Over the past month, the British Pound has strengthened 1.81%, and is up by 3.25% over the last 12 months. British Pound - values, historical data, forecasts and news - updated on September of 2025.

Graph and download economic data for Nominal Broad U.S. Dollar Index (DTWEXBGS) from 2006-01-02 to 2025-08-22 about trade-weighted, broad, exchange rate, currency, goods, services, rate, indexes, and USA.

The USD/IDR exchange rate fell to 16,404.3000 on September 1, 2025, down 0.07% from the previous session. Over the past month, the Indonesian Rupiah has weakened 0.22%, and is down by 5.45% over the last 12 months. Indonesian Rupiah - values, historical data, forecasts and news - updated on September of 2025.

The Bitcoin (BTC) price again reached an all-time high in 2025, as values exceeded over 111,842.71 USD on August 27, 2025. Price hikes in early 2025 were connected to the approval of Bitcoin ETFs in the United States, while previous hikes in 2021 were due to events involving Tesla and Coinbase, respectively. Tesla's announcement in March 2021 that it had acquired 1.5 billion U.S. dollars' worth of the digital coin, for example, as well as the IPO of the U.S.'s biggest crypto exchange, fueled mass interest. The market was noticeably different by the end of 2022, however, after another crypto exchange, FTX, filed for bankruptcy.Is the world running out of Bitcoin?Unlike fiat currency like the U.S. dollar - as the Federal Reserve can simply decide to print more banknotes - Bitcoin's supply is finite: BTC has a maximum supply embedded in its design, of which roughly 89 percent had been reached in April 2021. It is believed that Bitcoin will run out by 2040, despite more powerful mining equipment. This is because mining becomes exponentially more difficult and power-hungry every four years, a part of Bitcoin's original design. Because of this, a Bitcoin mining transaction could equal the energy consumption of a small country in 2021.Bitcoin's price outlook: a potential bubble?Cryptocurrencies have few metrics available that allow for forecasting, if only because it is rumored that only a few cryptocurrency holders own a large portion of the available supply. These large holders - referred to as 'whales'-are' said to make up two percent of anonymous ownership accounts, while owning roughly 92 percent of BTC. On top of this, most people who use cryptocurrency-related services worldwide are retail clients rather than institutional investors. This means outlooks on whether Bitcoin prices will fall or grow are difficult to measure, as movements from one large whale are already having a significant impact on this market.