US Dollar (USD)
United States · Federal Reserve (Fed) · Free float
The US Dollar is the world's dominant reserve and trading currency. It sits on one side of roughly nine in ten forex trades, and most commodities, including gold and oil, are priced in it.
Major contributors to the economy
- Services and finance
- Technology
- Advanced manufacturing
- Energy (a leading oil and gas producer)
- Healthcare and pharmaceuticals
- Agriculture and defence exports
Key factors
- Federal Reserve interest-rate policy. Rate decisions, projections and speeches by Fed officials set expectations for US interest rates, the single biggest driver of Dollar value.
- US inflation and jobs data. CPI/PCE inflation and the monthly Non-Farm Payrolls report shift rate expectations and move the Dollar within minutes.
- Treasury yields. Higher US bond yields relative to other countries attract capital and lift the Dollar.
- Safe-haven demand. In global stress the Dollar usually rallies as investors seek safety and liquidity.
- US fiscal and political developments. Government debt levels, budget standoffs, tariffs and trade policy affect confidence in US assets.