What is the best currency to invest in right now?

Investing in currencies, known as currency trading or forex, has always been challenging and intriguing for investors. The question of which is the best currency to invest in now depends on a number of factors. Investment decisions should be based on economic conditions, the geopolitical situation, and individual investment goals and strategies. In this article, we will look at various aspects that can help investors make an informed decision.

Existing trends in currency markets
Currency markets experience continuous fluctuations that can provide opportunities for profit. And which, of course, have their risks. The following currencies are currently in focus:

•  Dollar (USD): the US dollar has traditionally been considered a “safe haven” for investors, especially in periods of economic uncertainty. Trading the dollar is often associated with high liquidity and spreads.
• Euro (EUR): The euro is the world’s second most important currency after the dollar. Although it is under pressure from various economic factors, it still offers prospects, especially as the euro area economy stabilises.
• Swiss franc (CHF): The Swiss franc is also known as a safe asset. Investors often turn to it when the global economy is unstable. Swiss National Bank policy continues to be a factor influencing its value.
• Japanese Yen (JPY): The yen is another currency associated with safety. However, the Japanese economy is subject to various challenges that can affect value.

Let’s see the recommendations of the experts on the topic “What currency would you buy right now?” – Bloomberg TV Bulgaria poll.

A large part of the analysts say they would go for investments in the form of US dollars. Others stress that it is always better to have at least half of the assets in euros and the other half in dollars. Some experts say that the Japanese yen or pound is not a good alternative for investing at the moment. Fiat currencies are not recommended as a good investment as they lose some of their purchasing value in the long run due to inflation, analysts also point out.

Lyubomir Lekov
Investor
“Since we live in Europe and are tied to the euro, it is always good for me to have at least 50% of our assets in euros. On the other hand, 50% in dollars is worth a lot. There is one thing that is little talked about – that Trump wants to strengthen the dollar and will be ruthless to those who try to abandon the dollar as a reserve currency and that is why the dollar is currently strengthening. To me, a 50/50 dollar-euro ratio is good. One can hardly profit from an investment in a currency, rather hedge.”

Ivaylo Chaushev
Chief Market Analyst
“For me, the dollar remains one of the best investments as far as forex is concerned, because past the expected US tariffs, countries will aim to devalue their currencies to cope with these levies. Speculation is already starting about parity between the dollar and the euro in the coming months. This is driven by market expectations of Trump’s policies, the pace of the US economy relative to the European economy and expectations of Fed policy. The most familiar way to invest in the dollar is to simply open a dollar deposit at the bank, but it should be borne in mind that it gives a lower interest rate than the other option, which is an investment in US government securities. The Kerry dollar trade against the yen is a good but more speculative alternative because of the more frequent interventions of the Japanese authorities to support the yen.”

Zdravko Pirinliev
Investment Analyst
“Investment in fiat currencies should never be preferred by investors, as we know very well that fiat currencies in the long run lose some of their purchasing value due to inflation. A much better alternative and close are short-term debt instruments – government bonds with maturities of less than 12 months. This is something that every investor should have in their portfolio… The Swiss franc is the template for where we should hold our money, as there is still some correlation to gold, which plays as a positive for investors in the long term. Another currency, although things are looking rather peculiar there, is the Japanese yen. It has depreciated quite a bit in recent years, but sooner or later the yen will correct some of that decline. If we are chasing capital gains, an exposure to the Japanese yen would pay off in the next 2-4 years.”

Krasimir Yordanov
Portfolio Analyst
“Rather the US dollar, because only the US economy of most major economies is in better shape. It is where most of the investments are being made in new technologies related to artificial intelligence that will completely transform the global economy in the future. And it can be seen that the US will again be profitable in this respect. China’s economy is in a sorry state and only capital controls are preventing the yuan from depreciating further. The oversupply and large inventories of goods around the world are preventing the European economy from recovering, as Europe’s growth model is export-oriented. Japan’s economy is not in an enviable position either, the central bank has for years pursued a policy of a weaker yen to allow exports to sustain economic growth and the country to emerge from the deflationary spiral of recent years.”

Stoyne Vassilev
Financial Consultant
“I would like to divide the question into two parts. The first is that it is best to be hedged against the change in different currencies. Most of my investments are hedged in euros because of the change in the exchange rate. If I had to bet on which currency to invest in, I would definitely choose the dollar this year, especially after Trump’s election, because analysts unanimously believe that the dollar has reached its highest value against the euro in the last year and a half and will continue to rise. Although Trump’s statements are about devaluing the dollar and promoting export policy, it will be very difficult for him. If I had to choose which currency to invest in, I would bet on the US dollar. I would not bet on the euro because the major economies in Europe are entering or have already entered a recession. I don’t think the Japanese yen or the pound is a good alternative to invest in at the moment.”

The best currency for investment also depends on individual investment strategies. Investors who prefer short-term trading may focus on currencies with high volatility, while long-term oriented investors may prefer stable currencies with good economic fundamentals.

In practice, there is no universal answer to the question of which is the best currency for investment at the moment. Such decisions must be based on a thorough analysis of economic conditions, geopolitical factors and personal investment objectives. We encourage investors to familiarize themselves with current information and consider various scenarios before making important financial decisions. Investing always brings both the opportunity for stability and financial growth, as well as risks, so it is important to approach it wisely and thoroughly.

* This material does not constitute a recommendation for investment decisions!

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