The official currency of the United States of America and the world's primary reserve currency, abbreviated as USD and issued by the Federal Reserve System. The dollar is involved in approximately 88% of all global foreign exchange transactions and serves as the benchmark pricing currency for major commodities including oil, gold, and agricultural products. Its value is influenced by Federal Reserve monetary policy, U.S. economic data, geopolitical developments, and global risk sentiment.
Example
“The U.S. Dollar Index (DXY) climbed above 105 after strong non-farm payrolls data reinforced expectations that the Federal Reserve would keep rates elevated.”