Thank you for the great post that is well-analyzed and explained. Even though your post is brief, it is quite comprehensive, easy, and enjoyable to read. You did background research on the trend that the major world currencies have been following, especially in the first two quarters of this year. The American Dollar remains an important currency in global trade along with Euro, Yen, GBP, AUSD, CND, and the Yuan (Primtam, 2021). I will agree with you that if one is to consider purchasing a foreign currency with $10,000, it is important to purchase one of these currencies.
From my research, I noted that the last six months have been rather turbulent in the currency exchange business, owing to the continuing pandemic and the issues facing Europe. Based on research, purchasing European currencies was the best option some six months ago. From March, these currencies seem to have been affected by the Russian-Ukrainian war. I noted that the Euro was affected, dropping from an average exchange rate of $1.1455 per Euro in February to $1.0379 per Euro in May this year.
In your response, it appears that even after recovering from the pandemic last year, European currencies are now facing the consequences of the war, especially as trade with Russia has been affected. Even though the GBP has remained strong throughout the last six months, it is still not advisable to go for it, given that the UK is also affected by the armed conflicts in the continent.
Therefore, this takes one to consider the Asian currencies, which have been experiencing a steady recovery following the relaxation of the Covid-19 policies of 2022. Comparing the Chinese Yuan and the Japanese Yen, I would support your view that the former is better when considering purchasing a foreign currency. As you have stated, the Yen has been improving on the international market, owing to the resumption of Chinese global trade activities.
China’s trade wars with the US that affected the Yuan in 2019 and 2020 seem to have stabilized. I would also advise other colleagues in the class to look at other alternatives such as the currencies of the Middle East nations, which are among the strongest in the world. I will be researching the currencies of Saudi Arabia, Kuwait, UAE, Bahrain, and Qatar since they are relatively stable.
Reference
Primtam, A. (2021). Most traded currencies in the world in 2021. BookMyForex.com.