GENEVA, September 1, 2010 (AFP) – The euro, Japanese yen and some emerging market currencies are gaining ground in the foreign exchange market while the dollar is continuing to decline, a bank survey said Wednesday. “The US dollar continued a slow retreat from its 90 percent peak share of all transactions reached in the 2001 survey just after the introduction of the euro,” the Bank for International Settlements said.
The share of foreign exchange transactions denominated in the US currency fell to 85 percent in April, said the BIS, widely known as the “central bankers’ bank.”
Transactions in the European common currency meanwhile gained two percentage points in market share, reaching 39 percent, with the Japanese yen also up two percentage points to 19 percent.
Because currency trades typically involve two currencies, the total percentage for the market is given as out of 200 percent rather than 100 percent.
Emerging market units are also gaining popularity, with the market share of 23 currencies growing to 14 percent in April 2010 from the 12.3 percent recorded in the previous survey of April 2007.
“The most significant increases were seen for the Turkish lira and the Korean won, followed b