Why USD news affecting other currency?

[fxoday]

USD still become currency as global market use this currency, so if this weak over another currency also possible to many other currencies being affected, but maybe on few decades on future, dominating USD can change

 

[Eryk Martin]

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.

 

[sebking1986]

USD is the big daddy currency in the world following the Bretton Woods agreement.

 

[ele020]

The United States is considered the world’s most powerful country, whether it’s in the domain of military affairs, geopolitics, industry, energy, science, culture, and technology. It is even called a “financial superpower.” As we all know The United States has the largest economy in the world and the U.S. dollar is the world’s reserve currency. This means that the U.S. dollar is a participant in about 90% of all forex transactions, therefore USD news affects other currencies as well.

 

[MoBest]

May be because USD is the world reserve currency.

 

[bigdolly]

Because many currencies are quoted in USD. If it's not quoted USD news affect them through arbitrage. And as others said USD is reserve currency and US economy is a top 1.

 

[Azalea_turner]

Thank you so much I have been having the same issues. This was very helpful

Most currencies are ultimately hedged against the reserve currency which is the US dollar.

It is mostly in the form of receivables/debt instruments, such as the treasury bills, notes and long term bonds.

Every commerce related trade in the world is directly or indirectly, technically or fundamentally, linked to the US dollar.

Please study the bond markets, specifically how credit rating of government bond eventually impacts its respective country's national currency.

 

[ForexWarrior2020]

Lots watch USD for its safe haven element so if people are buying it a lot others will assume there is something negative happening so will leave pairs they are in to move to safer currencies

 

[May Davis]

Interesting reading, I feel like there are so many factors to think about it's quite overwhelming.

 

[JayDee3000]

Simple, USD has the big boy pants...