What is the most traded currency in the foreign exchange market?

The most traded currency in the foreign exchange market is the United States dollar.

The dollar’s dominance reflects the size of the U.S. economy, its role in global trade and finance, and its status as the leading reserve currency. It is used in a large share of international payments, commodities contracts, loans, and central-bank reserves. Because currencies are traded in pairs, the dollar appears on one side of most major foreign-exchange transactions.

Recent turnover data illustrate the gap. The Bank for International Settlements’ April 2025 survey recorded the dollar in about 89.2% of global foreign-exchange transactions, while the euro ranked second at 28.9%. These percentages add to more than 100% because every currency trade involves two currencies and is counted on both sides.

The dollar is not necessarily the world’s most valuable currency or the currency with the highest exchange rate. “Most traded” means it is involved in the greatest share of market turnover. London remains the largest trading center geographically, but that does not change which currency dominates transactions.