Tyranny from the Fortunate Understand the Risks of Forex Trading Before Opening an Account

Uncertainty and Exchange Rates

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Uncertainty in a country's future is directly reflected in exchange rates, since a lack of confidence in a currency makes investing in a currency pair denominated in that currency a risky endeavor. This is one of the main reasons why the U.S. dollar has been such a popular currency: while the stock markets may fluctuate there is little government disruption.
Source: http://www.investorguide.com/igu-article-1151-forex-basics-economic-factors-influencing-currency-trading.html