The US Dollar (USD) is the official currency of the United States and a cornerstone of the global economy. As the world's primary reserve currency, its...
The US dollar holds this status due to the size and stability of the U.S. economy, its deep financial markets, and its widespread acceptance in international trade and debt settlements globally.
Its value is primarily influenced by U.S. interest rates, inflation data, economic growth, government debt levels, trade balances, and global geopolitical stability.
A strong dollar makes U.S. imports cheaper but exports more expensive, potentially slowing U.S. growth and making dollar-denominated debt harder for other nations to repay. A weak dollar has the opposite effects.
The Federal Reserve, the U.S. central bank, manages the dollar through monetary policy tools, primarily by setting interest rates and influencing the money supply, impacting its domestic and international value.