As the most traded Currency on the global stage, the U.S. dollar is generally viewed as the world's most powerful currency.

Despite this, the greenback is not the strongest of the 180-odd traditional fiat currencies recognized worldwide as legal tender.

What is the price of foreign currency?

Because foreign currencies are traded in pairs, one currency is always priced relative to another, known as the exchange rate.

A floating currency is one whose value fluctuates in response to demand and supply, while a pegged currency has a fixed value relative to another currency, such as the dollar.

In a foreign currency, exchange rates affect the cost of goods and services.

When the dollar strengthens against the British pound, American travelers are able to score cheaper vacations in London by getting more pounds for their dollars. Due to a decrease in the value of the pound at a foreign exchange, it becomes more expensive for British tourists to visit the U.S.

For investors looking to profit from foreign exchange trading, the channel created a guide explaining the basics.

The Strongest Currencies are determined by the amount of dollars it costs to buy one unit of each currency. The exchange rates are based on data from Open Exchange.

The top 10 strongest currencies are as follows:

A Kuwaiti dinar buys 3.26 dollars (or, to put it another way, $1 is worth 0.31 Kuwaiti dinars).

As one of the world's leading oil exporters, Kuwait earns much of its wealth from its position on the Persian Gulf between Saudi Arabia and Iraq. A Kuwaiti Dinar was introduced in the 1960s and initially pegged to the British pound before being re-pegged to an undisclosed basket of currencies.

The Bahraini Dinar (BHD)

A Bahraini dinar is the world's second-strongest currency, with 1 dinar worth 2.65 dollars (or $1 equals 0.38 Bahraini dinars).

As with Kuwait, Bahrain's economy relies heavily on oil and gas exports. The Bahraini dinar entered circulation in 1965, and it is pegged to the dollar.

The Omani Rial (OMR)

One Omani rial equals 2.60 dollars (or $1 equals 0.38 Omani rials), making it the third-strongest currency in the world.

Like its wealthy neighbors, Oman exports a large amount of oil and gas. The Omani rial was introduced in the 1970s and is pegged to the dollar.

The Jordanian Dinar (JOD)

With 1 dinar equaling 1.41 dollars (or $1 equals 0.71 Jordanian dinars), the Jordanian dinar is the fourth-strongest currency in the world.

As a landlocked country in the Middle East, Jordan is less dependent on oil and gas exports than other countries in the region. It has struggled with sluggish economic growth and rising debt.

The British Pound (GBP)

According to the World Bank, Britain has the sixth-largest economy in the world by gross domestic product (GDP). The pound was introduced in the 1400s before decimalization in 1971.

Cayman Islands Dollar (KYD)

Gibraltar Pound (GIP)

With 1 pound equaling 1.22 dollars (or $1 equaling 0.82 Gibraltar pound), the Gibraltar pound ranks No. 6 among the world's strongest currencies.

As a British territory, Gibraltar occupies just 2.6 square miles at the southern tip of Spain. Its pound is pegged to the British pound (at par, so that one GIP equals one GBP).

Swiss Franc (CHF)

With 1 franc buying 1.08 dollars (or $1 equaling 0.92 Swiss francs), the Swiss franc is tied for eighth among the strongest currencies in the world.

As a result of Switzerland's political stability, the Swiss franc is widely viewed as a safe haven and the official legal tender of Switzerland and Liechtenstein. The Swiss franc was introduced in 1850 and later pegged to the euro before moving to a free-float currency.

Euro (EUR)

20 of the 27 countries that make up the European Union use the euro as their official currency. Euro coins and bank notes entered circulation in 2002, and the currency is free-floating.

In terms of purchasing power, the U.S. dollar is the 10th-strongest currency in the world. (Obviously.) All other currencies around the world are worth less than a dollar.

10. U.S. Dollar