World’s most strongest currency
Top 10 Strongest Currencies in the World
The Fed’s recent federal funds rate increase to 0.25% is an indicator of future strength for the U.S. dollar. As it stands, U.S. currency has one of the strongest exchange rates in the world. After the fall of euro over the past two to three years, the dollar has made additional gains over the yuan and the yen. This may position the dollar for more future gains against these currencies. While the euro is currently stronger than the dollar, high fluctuations in the euro’s value suggest that the currency is unstable. Only 6 of 55 international currencies are stronger than the dollar, as of February 2016.
Euro (0.9 EUR to 1 USD)
In January 2016, the monthly average for the dollar to euro exchange rate was about €0.92 for $1. The euro bounced from its strongest to weakest point in January, when $1 was changed for €0.86, to November’s rate of €0.93. In 2014, the euro weakened the most when rates left the 70s and entered the 80s. A weak currency in the euro zone has been responsible for a number of economic difficulties facing the European Union, including low gross domestic product (GDP) growth and sidelining financial growth. European monetary policy leaders suggest that the currency is likely to remain weak for 2016.
British Pound (0.69 GBP to 1 USD)
Bank of England policymakers have not raised interest rates for six years. It is using low interest rates to encourage lending activity and foster growth. A series of incorrect speculations on the British pound’s movement has been caused by inconsistencies between policymakers’ moves and their announcements. The British pound has traditionally been a strong currency against the U.S. dollar, and its continued circulation after the introduction of the euro helps to support England’s economy.
Bahraini Dinar (0.37 BHD to 1 USD)
The Bahraini dinar is currently the world’s most valuable currency, though it occasionally faces stiff competition with the Kuwaiti dinar for this title. The Bahraini dinar’s yearly average has remained within 1 cent of its current exchange rate since 2011, despite the momentous effect that low oil prices have had on Bahrain’s economy. Bahrain’s inflation rate dropped from 2.7 to 2% from 2014 to 2015. The country’s domestic credit stock is $24.16 billion as of January 2015, though its sovereign debt rating hovers above junk status.
Kuwaiti Dinar (0.39 KWD to 1 USD)
A strong market in oil exports has helped augment Kuwait’s wealth and increase the value of the Kuwaiti dinar. Petroleum exports account for 94% of the country’s export revenue. Its GDP is $123.2 billion, and 2015 per capital GDP is 72,200. The Kuwaiti dinar was even more valuable in previous years, but an account deficit and low ease of business has adversely affected the country’s economy.
Latvian Lat (0.62 LVL to 1 USD)
The lat is a stable currency and has not seen much fluctuation in the past two years. The currency had a spread of 4 cents year-on-year, reaffirming Latvia’s style of monetary management. The lat has gained strength after a decade of transitioning out of an economic crisis that occurred in the 1990s. Latvia has adopted the euro since entering the European Union, but the lat is still in circulation and trades on forex markets.
Omani Rial (0.38 OMR to 1 USD)
Oman is currently experiencing very low inflation of 1%. The rial is strong against the dollar due to tight monetary policy and financial restrictions in Oman. Oman policymakers have restricted the money supply to protect the country against war and conflict in the Middle East. This has impacted the country’s inflation rate, and lending practices in Oman tend to favor risk-adverse companies and business ventures.
Cayman Islands Dollar,