Article by Currency Information and Research

Top 10 world currencies for investing the US dollar

 Singapore dollar

Arguably the best currency to invest in right now would be the Singapore dollar. Singapore has continued to be a steadily growing economy with even better prospects for growth. For starters it is the worlds most open and transparent economy, with what is probably the most stable political environments. It’s tourism market and airlines continue to expand rapidly. This is aided by Singapore’s geographical position that somewhat makes it the gateway to China. Singapore is also large and still growing investor in Africa an the rest of Asia. Furthermore, Singapore is not known to have hard-line political positions, or instabilities, which means security for your investment. Though it is not a very the strongest currency, it is bound to keep growing and this means more returns for you.

Swiss Franc

The Swiss Franc passes for another very worthy investment. Many refer to it as the safe haven currency. Switzerland is perhaps one of the most stable economies in the world. Its model tourism sector and banking have been known to have unmatched consistency in their operations and growth. The country is also famously keen on political neutrality, which they have maintained admirably. The Swiss Franc is not only a strong currrency; it is a stable and safe investment, especially for investing the dollar.

Australian dollar

If you expect an increase in the prices of commodities such as copper, gold and aluminum, then the Australian dollar is your ideal currency to invest in. This is because the Aussie dollar is very sensitive to fluctuations in prices of these raw materials to the world market. These products alone have been known to contribute close to fourteen percent of the country’s economic growth. The Aussie dollar also has very high interest rates of about six percent.

Chinese Yuan

The Chinese Yuan is another very good investment option for the dollar, especially for a long term strategy. Since 2005, the Yuan has maintained a steady increase in value due to consistent economic growth of China and diversification of its economy. The recent spell of political stability in the country has also been a big plus for the currency and certainly an indication of better prospects in the near future. Therefore, investing in the Chinese Yuan is a good idea for earning steady increase in interests and appreciation of value for your money. - Read more of the Yuan

New Zealand Dollar

The New Zealand Dollar is enlisted for the sheer fact that it  is the currency with the highest interest rates in the industrialized world. At 7.5%, these interest rates are expected to increase in the coming few months, and you may want to invest just to get these interest earnings.

The Euro

With the dollar continuing to decrease in value, you may have noticed that more and more central banks are trying to diversify their reserves away from the US Dollar. As this continues, the Euro is continues to be widely seen as the next major currency. This trend, along with the significant slowdown in inflation in the European countries, means that the Euro will continue to grow stronger against the dollar, making it a viable option for investors.

Sterling Pound

Currently accounting for close to 12 percent of all foreign reserves by central banks worldwide, the sterling pound is also another option for dollar investors. Inspite of some claims that the sterling pound is overvalued. it remains a stable currency and one that you are likely to get good returns from if you choose to invest in it.

Canadian Dollar

One other currency that an investor may opt for is the Canadian dollar. This is because Canada’s is a large and relatively stable economy with good interest rates. However, the Canadian dollar is bound to increase or decrease in value together with the US dollar given the two countries’ economic interactions. Still, this is a good currency and almost assured of some level of stability.

Japanese Yen

Japan Is still one of the world’s most industrialized countries. Although the yen has continued to be a weak currency even with the developments in Japan, It’s relative stability has given it a reputation among investors as a secure investment for the dollar. - more on the Yen

South African Rand

Well, this may be debatable, but the South African Rand one very viable currency if you intend to invest in Africa. Vast Gold mines and a robust tourism industry have consistently contributed to an improving currency value. Successful hosting of the 2010 world cup has also gone a long way in boosting the economy of South Africa. The continued political stability for post apartheid South Africa is a big plus and guarantees security for your investment.

 

It is important to note that the viability of investing in a given currency is determined not just by assessing the current economic situation, but by looking out to see whether there is a promise of growth and stability both in the long and the sort term. The political stability of the given nation is also very important to ascertain when making your investment decisions. There are a host of other factors to consider for each currency and it is always very important not to rush into investing in a currency just because everyone seems to be doing so. So take your time and make sure you invest in a currency that will not leave you regretting.

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Modified:09/15/2011
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