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USD is the international currency code for the United States Dollar, the official currency of the United States. It is the most widely used currency in the world, serving as the primary "reserve currency" for global trade and finance.
Key Facts
* Symbol: Commonly represented by the $ sign (or US$ to distinguish it from other dollar currencies).
* ISO 4217 Code: USD (Numeric: 840).
* Subunits: 1 dollar is divided into 100 cents (¢).
* Issuer: It is issued by the Federal Reserve, the central bank of the United States.
* Nickname: Often called "the greenback" due to the distinct green color of its banknotes.
Why is it so important?
The USD is considered the global "anchor" currency. This means:
* Global Trade: Most international commodities, like oil and gold, are priced in USD.
* Stability: Many countries "peg" their own currency's value to the USD or use it alongside their local currency (a process called dollarization) to ensure economic stability.
* Foreign Reserves: Central banks around the world hold massive amounts of USD to pay off international debts or influence their own exchange rates.
Common Denominations
| Type | Values |
|---|---|
| Bills | $1, $2 (rare), $5, $10, $20, $50, $100 |
| Coins | 1¢ (Penny), 5¢ (Nickel), 10¢ (Dime), 25¢ (Quarter), 50¢ (Half-dollar), $1 (Dollar coin) |
Current Status (January 2026)
As of early 2026, the US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, has been trading around 98.9 to 99.1.
* Market Resilience: Despite recent geopolitical tensions—including trade disputes regarding tariffs and the proposed US purchase of Greenland—the dollar remains supported by a strong US labor market.
* Inflation & Interest Rates: Market participants are closely watching the Federal Reserve, as recent inflation data has reduced expectations for immediate interest rate cuts.
* Safe Haven: During periods of global market volatility, investors continue to flock to the USD as a "safe haven" asset.
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