Concerns about the soundness of the European Union and its single currency have been roiling financial markets of all kinds on and off for more than a year. Currency crises can do that, especially given the enormous size of the foreign exchange market, the possibility of rapid, dramatic swings in direction and the power and momentum of trading.
And as the market saying goes: There’s nothing like an international crisis to lift the dollar. That’s certainly been the case recently, with the U.S. gaining more than 5 percent against a basket of currencies in May alone, while stocks around the world have wilted.
The currency market has been home to some dramatic and dynamic events of the past three decades, most of which shook the financial markets and affected the global economy for weeks, even months, on end.
Many of them took place well before currency ETFs became available, but there are plenty of funds with which to play the global economy.
Here’s a look at 10 events in the market.
Posted 12 June 2012