Aussie dollar a global player, stayer
The Australian dollar continues to play a bigger role in the $US5.3 trillion-a-day global currency market, its share of turnover rising to 8.6 per cent in the past three years.
Figures published by the Bank for International Settlements show the Australian dollar has cemented its position as one of the world's most heavily traded currencies since the last detailed figures were collected in 2010.
The dollar's share of turnover rose from 7.6 per cent to 8.6 per cent, making it the fifth most traded after the US dollar, the euro, the yen and the pound.
The Aussie - seen as a proxy for Asian growth - was followed by the Swiss franc, Canadian dollar and Mexican peso on the list of most-traded currencies.
But while the local dollar is being traded more than ever, a smaller share of those transactions are occurring within Australia's geographical boundaries.
Daily turnover in the local market fell about 5 per cent since 2010, to $182 billion a day, after banks including TD Securities, Royal Bank of Canada and Royal Bank of Scotland moved their foreign exchange trading desks to Asian hubs.
Turnover in the Australian market accounts for about 2.7 per cent of global activity.
London remains the world's foreign exchange centre, with 41.9 per cent of all trades occurring in Britain. The next biggest hubs were the US, Singapore and Japan.
Based on a snapshot of the market from April, the report said daily turnover in the global currency market had shot up by 35 per cent to $US5.3 trillion since 2010.
The yen posted the strongest growth after its government unleashed a program of money printing and a devaluation of the yen, known as "Abenomics" after Prime Minister Shinzo Abe.
"The Japanese yen stood out as the major currency that saw the most substantial jump in trading activity, whereas the role of the euro as an international currency declined over the period," the report said.
The Australian dollar eased on Friday to US91.47¢, down from US91.56¢ previously.