The DXY exchange rate fell to 98.9672 on June 9, 2025, down 0.15% from the previous session. Over the past month, the United States Dollar has weakened 1.61%, and is down by 5.87% over the last 12 months. United States Dollar - values, historical data, forecasts and news - updated on June of 2025.

The euro and U.S. dollar made up more than ***** of 10 SWIFT payments worldwide in 2024, 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 2023. What sparked this de-dollarization trend, and will it continue? Trade sanctions and de-dollarization De-dollarization in 2023 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 2023, 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 2023 and 2030.

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.

The USD/BRL exchange rate fell to 5.5594 on June 6, 2025, down 0.52% from the previous session. Over the past month, the Brazilian Real has strengthened 3.23%, but it's down by 4.03% over the last 12 months. Brazilian Real - values, historical data, forecasts and news - updated on June of 2025.

Long term historical dataset of the daily Euro - U.S. Dollar (EURUSD) exchange rate back to 1999.

Snapshot img

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.

The market is experiencing significant growth, driven by the global trend of increasing urbanization and the 24x7 trading opportunities it affords. The digitalization of financial services has enabled seamless transactions across borders, making foreign exchange more accessible than ever before. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. However, this market is not without challenges. Regulatory hurdles impact adoption in some regions, with stringent regulations and compliance requirements adding complexity to market entry. Furthermore, the uncertainty of future exchange rates poses a significant risk for businesses engaging in foreign exchange transactions.
Navigating these challenges requires a deep understanding of market dynamics and a strategic approach to risk management. Companies seeking to capitalize on the opportunities in the market must stay informed of regulatory changes and adopt advanced risk management techniques to mitigate the impact of exchange rate volatility. By doing so, they can effectively capitalize on the growth potential of this dynamic market.

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

Request Free Sample

The market, also known as FX, plays a crucial role in global business operations and finance. FX market liquidity is essential for effective portfolio management, mitigating interest rate risk, and facilitating cross-border transactions. FX analysis involves various tools and techniques, including technical analysis using moving averages, chart patterns, and stochastic oscillators, as well as fundamental analysis focusing on economic indicators and sentiment. Interest rate differentials drive currency appreciation and influence FX trading, with foreign exchange swaps enabling the exchange of principal and interest between two different currencies. Market orders facilitate instant execution, while trading platforms offer advanced features such as automated trading robots and AI-driven systems.
FX market impact is a critical consideration, with operational risk and compliance essential in managing currency exposure and hedging strategies. Currency risk and FX forward rates are vital components of FX risk management, while FX trading apps and discipline help maximize profit and minimize psychological biases. FX trading systems employ various tools like FX charts, indicators, and exchange-traded derivatives to analyze trends and forecast future movements. Cryptocurrency trading has also emerged as a significant component of FX markets, adding complexity and volatility to the market structure. FX trading Blockchain Technology offers potential benefits, such as increased transparency and reduced counterparty risk.

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.

In het market, dealers manage risky inventory positions during the maturity period, earning returns through liquidity provision. These returns reflect the risk premium associated with non-diversifiable risks. Dealers employ trading strategies using customer trade information to generate higher-than-expected returns. Competition among liquidity providers is expected to maintain stable pricing during the forecast period. Reporting dealers offer inter-day liquidity, buying and selling foreign exchange at posted bids while providing quotes throughout the trading day. Trading in the market involves various financial instruments and tools. Market orders are executed at the prevailing market price, while limit orders are executed at a specified price.

Forex brokers facilitate transactions between buyers and sellers, providing access to various trading tools such as currency baskets and exchange-traded derivatives. Cross-currency pairs are used for hedging and speculation, with the value of one curre

Interactive chart of historical data showing the broad price-adjusted U.S. dollar index published by the Federal Reserve. The index is adjusted for the aggregated home inflation rates of all included currencies. The price adjustment is especially important with our Asian and South American trading partners due to their significant inflation episodes of the 80s and 90s.

The USD/TRY exchange rate rose to 39.2242 on June 9, 2025, up 0.03% from the previous session. Over the past month, the Turkish Lira has weakened 1.18%, and is down by 21.09% over the last 12 months. Turkish Lira - values, historical data, forecasts and news - updated on June of 2025.

The U.S. dollar was the most common currency in foreign exchange reserves in 2023, comprising more than three times the amount of the euro in global reserves that year. This total peaked in 2015, partly due to the strength of the dollar during the Eurozone crisis. The share of the U.S. dollar has lost since to the Japanese yen and euro, as well as other currencies. Why do foreign exchange reserves matter? When countries with different currencies export goods, they must agree on a currency for payment. As a result, countries hold currency reserves worth trillions of U.S. dollars. After World War II, the U.S. dollar itself became the international currency in the Bretton Woods Agreement and is thus the most common currency for international payments. The United States Treasury is also seen by most as risk-free, giving the country a low-risk premium. For this reason, countries hold U.S. dollars in reserve because the currency holds value relatively well eventually. China and currency reserves Since 2016, the International Monetary Fund has included the Chinese renminbi (yuan) as part of the Special Drawing Rights (SDR) basket. This decision recognized the influence of the renminbi as a reserve currency, particularly in several Asian countries. China also holds significant foreign exchange reserves itself, funded by its large positive trade balance.

At 7.99 U.S. dollars, Switzerland has the most expensive Big Macs in the world, according to the January 2025 Big Mac index. Concurrently, the cost of a Big Mac was 5.79 dollars in the U.S., and 5.95 U.S. dollars in the Euro area. What is the Big Mac index? The Big Mac index, published by The Economist, is a novel way of measuring whether the market exchange rates for different countries’ currencies are overvalued or undervalued. It does this by measuring each currency against a common standard – the Big Mac hamburger sold by McDonald’s restaurants all over the world. Twice a year the Economist converts the average national price of a Big Mac into U.S. dollars using the exchange rate at that point in time. As a Big Mac is a completely standardized product across the world, the argument goes that it should have the same relative cost in every country. Differences in the cost of a Big Mac expressed as U.S. dollars therefore reflect differences in the purchasing power of each currency. Is the Big Mac index a good measure of purchasing power parity? Purchasing power parity (PPP) is the idea that items should cost the same in different countries, based on the exchange rate at that time. This relationship does not hold in practice. Factors like tax rates, wage regulations, whether components need to be imported, and the level of market competition all contribute to price variations between countries. The Big Mac index does measure this basic point – that one U.S. dollar can buy more in some countries than others. There are more accurate ways to measure differences in PPP though, which convert a larger range of products into their dollar price. Adjusting for PPP can have a massive effect on how we understand a country’s economy. The country with the largest GDP adjusted for PPP is China, but when looking at the unadjusted GDP of different countries, the U.S. has the largest economy.

The USD/MXN exchange rate fell to 19.0796 on June 9, 2025, down 0.18% from the previous session. Over the past month, the Mexican Peso has strengthened 2.85%, but it's down by 2.82% over the last 12 months. Mexican Peso - values, historical data, forecasts and news - updated on June of 2025.

The USD/CNY exchange rate fell to 7.1809 on June 9, 2025, down 0.13% from the previous session. Over the past month, the Chinese Yuan has strengthened 0.27%, and is up by 1.18% over the last 12 months. Chinese Yuan - values, historical data, forecasts and news - updated on June of 2025.

Forex daily volume was nearly six billion U.S. dollars for the USD currency, an amount three times higher than for the euro (EUR). The forex - or foreign exchange market - turnover per day is a figure that is not often measured, only once every three years. No figures are available for 2020, for instance. What figures are available, however, indicate that the USD currency far outweighs that of many other currencies all over the world.

What is the forex market?

The forex market is based on the fluctuations in the value of currency interest rates. For example, the U.S. dollar performs differently against other major currencies. If one can properly predict these fluctuations, they can buy a weaker currency with a stronger one. After the currencies rebalance, the original currency will be worth more terms of the exchange rate, giving the investor a profit. There are many foreign exchange trading services, including many multinational banks which already work in multiple currencies.

Other currency trading functions

Countries and central banks often hold foreign currencies. These international reserves help facilitate the transactions in international trade, which is one reason China’s foreign reserves are so high. Countries can buy and sell foreign currencies to maintain a particular exchange rate. This is necessary for currencies which are pegged to another currency, such as the U.S. dollar. However, some countries are accused of exchange rate manipulation in order to make their exports seem more attractive. Finally, certain currencies are considered safer. Citizens and firms in a country with an unstable currency will buy these currencies to avoid volatility, or even hyperinflation, in their home currency.

The EUR/USD exchange rate rose to 1.1424 on June 9, 2025, up 0.25% from the previous session. Over the past month, the Euro US Dollar Exchange Rate - EUR/USD has strengthened 3.06%, and is up by 6.14% over the last 12 months. Euro US Dollar Exchange Rate - EUR/USD - values, historical data, forecasts and news - updated on June of 2025.

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. 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 USD/RUB exchange rate rose to 79.3100 on June 9, 2025, up 0.58% from the previous session. Over the past month, the Russian Ruble has strengthened 2.09%, and is up by 10.43% over the last 12 months. Russian Ruble - values, historical data, forecasts and news - updated on June of 2025.

View data of the frequency at which one unit of currency purchases domestically produced goods and services within a given time period.

The GBP/USD exchange rate rose to 1.3559 on June 9, 2025, up 0.25% from the previous session. Over the past month, the British Pound has strengthened 2.91%, and is up by 6.54% over the last 12 months. British Pound - values, historical data, forecasts and news - updated on June of 2025.

The USD/VND exchange rate fell to 26,042.5000 on June 9, 2025, down 0.04% from the previous session. Over the past month, the Vietnamese Dong has weakened 0.28%, and is down by 2.47% over the last 12 months. Vietnamese Dong - values, historical data, forecasts and news - updated on June of 2025.

Key information about India Real Effective Exchange Rate

• India Real Effective Exchange Rate (REER: 2005=100: Month Avg: India) was 115.2 in Jan 2025, compared with the number of 117.7 in the previous month.
• India Real Effective Exchange Rate data is updated monthly and averaged 118.9 from Apr 2004 to Jan 2025.
• The data reached an all-time high of 118.9 in Nov 2024 and a record low of 94.8 in Apr 2009.

• In the latest reports, India Short Term Interest Rate: Month End: India: MIBOR: 3 Months was reported at 7.2 % pa in Jun 2023.
• The cash rate (Policy Rate: Month End: Repo Rate) was set at 6.5 % pa in Jan 2025.
• India Exchange Rate against USD averaged 82.2 (USD/INR) in Jun 2023.