The most traded currency pairs in the world are called the Majors. The list includes following currencies: Euro (EUR), US Dollar (USD), Japanese Yen (JPY), Pound Sterling (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), and the Swiss Franc (CHF).
The US Dollar is by far the most widely traded currency.
In addition, the widespread trading of the US Dollar reflects its use as a “vehicle” currency in foreign exchange transactions
Example:
A trader in India who wants to shift funds from one currency to another, say from Indian Rupees to Philippine Pesos, will probably sell INR for USD and then sell the USD for Pesos.
Although this approach results in two transactions rather than one, it may be the preferred way, since the USD/INR market and the USD/Philippine Peso market are much more active and liquid than a bilateral market for the two currencies directly against each other (INR/PESO)
Like the US Dollar, the Euro has a strong international presence and over the years has emerged as a premier currency, second only to the US Dollar.
The Japanese Yen is the third most traded currency in the world. It has a much smaller international presence than the US Dollar or the Euro. The Yen is very liquid around the world, practically around the clock.
On October 1, 2008 BSE launched its currency derivatives segment in dollar-rupee currency futures as the exchange traded currency futures contracts facilitate easy access, increased transparency, efficient price discovery, better counterparty credit risk management, wider participation and reduced transaction costs.