Why USD news affecting other currency?

[holycow]

When it comes to forex trading i believe that the USD is still the king in forex trading and could be used as a benchmark while trading forex currency pairs.

 

[fxoday]

When it comes to forex trading i believe that the USD is still the king in forex trading and could be used as a benchmark while trading forex currency pairs.

All currency correlated, but the most benchmark indeed USD still the main currency, many instrument price use USD, like as gold, silver, oil, etc, its logic the more currency used volume still high.

 

[jocojovan]

We live in the world of globalization, many countries have dollar as an investment instrument and if you would like to order a pill from South Africa then what currency you would like to use? The local one or usd?

 

[momo3HC]

Yes that's right. USD is the main currency.

World reserve currency to be more accurate.

 

[Toibit]

One of the main reason why USD affects other currencies is due to the risk appetite/aversion concept. When there are geo politic tensions or the economies of major countries are in bad shape, investors tend to buy safe haeven currencies such as USD, JPY and sell risk related currencies such as the exotic or the commodities currencies (risk aversion). The opposite happens when risk is perceived as low by investors (risk appetite).

 

[holycow]

We live in the world of globalization, many countries have dollar as an investment instrument and if you would like to order a pill from South Africa then what currency you would like to use? The local one or usd?

Exactly it is also considered to be a safe heaven when it comes to investing so investors usually prefer investing in USD during hard and uncertain times.

 

[Eleonora_24]

USD affects other currencies because of its high trade volume

 

[momo3HC]

Exactly it is also considered to be a safe heaven when it comes to investing so investors usually prefer investing in USD during hard and uncertain times.

Which is pure joke tbh.

 

[Kai.Aki]

It’s because USD affects the total volume of global trade.

 

[Marien]

Most countries have foreign reserves in USD hence the reason USD affects other currencies