Most countries have foreign reserves in USD hence the reason USD affects other currencies
Exactly and they also trade in USD like as far as im aware China buy a lot of their commodities in USD
Most countries have foreign reserves in USD hence the reason USD affects other currencies
greenbacks are considered to be the currency of the world economy, that's why the news about us dollar affects other currencies. US dollar is the most powerful currency because all the transaction around the whole world are being conducted with a help of this currency. Countries pay for gas, oil, commodities and other things in dollars.
the main reason was the refusal from the old currency system, which implied that all the transactions are being executed with a help of gold. the system was denied and the us dollar replaced the gold.
these days all traders watch for the dollar and its price change in relation to their national currency.
Unfortunately... or fortunately so.
The U.S. dollar is the main currency in the world. All of the world's currencies are tied to it, so news that affects the dollar can affect the currency in your country.
Once upon a time, everything was tied to gold. It was the so-called "gold standard".
I think that was the right thing to do. I mean, there's a reserve currency.