Why USD news affecting other currency?

[bigdolly]

US dollar has an impact directly or indirectly on most of the currencies in the world, as US trades are spread vastly all over the world. So each and every news related to US makes an impact on the other countries as well.

 

[Purekiller]

The relative strength of the U.S. economy supports the value of the dollar. It's the reason the dollar is the most powerful currency. As of 2018, the U.S. had $1,671 billion in circulation. As much as half that value is estimated to be in circulation abroad. Many of these bills are in the former Soviet Union countries and in Latin America. They are often used as hard currency in day-to-day transactions.
In the foreign exchange market, the dollar rules. Around 90% of forex trading involves the U.S. dollar. The dollar is just one of the world's 185 currencies according to the International Standards Organization List, but most of these currencies are only used inside their own countries.

 

[sebking1986]

Great example of how it works with the news today. Money flooding out of EUR ad GBP and equities/crypto into USD and gold also.

 

[bigdolly]

Great example of how it works with the news today. Money flooding out of EUR ad GBP and equities/crypto into USD and gold also.

Yes I think this trend should continue for sometime since escalation won't fade soon, something big should happen.

 

[sebking1986]

Indeed, we could see some highs in DXY not seen for a while during this period.

 

[ForexWarrior2020]

Its just so many countries trade in the dollar as a proxy even Russia. So once something happens to USD it has a ripple affect

 

[reece Rispoli]

US DOLLAR is king everything is based off of it

 

[fxoday]

USD still become the world reserve currency, according to the information is about 40% currency reserve in USD currency, so possible the currency is still highly traded in forex market and still as strong currency, although now they get rival from Chinese Yuan

 

[FriendlyFX]

It's a safe haven currency everything is based off it it has that ripple effect on every currency not suprising

 

[TRD Andrew]

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