2008 Financial Crisis: Impact on Forex Trading

5 min read

The 2008 global financial crisis had a dramatic impact on the forex (foreign exchange) markets. Exchange rates for many major currencies, such as the Euro and the US Dollar, shifted drastically in the aftermath of the crisis as investors flocked to “safe haven” currencies such as the yen and Swiss franc to avoid risk. The volatility of the market caused exchange rate spreads between currency pairs to widen, resulting in increases in both transactional costs and foreign exchange risks for institutions and individuals who conducted business in foreign currencies.