United States Dollar General Info
The three letter currency code for the United States Dollar is USD and the symbol is $. It is the domestic currency in United States, East Timor, Ecuador, El Salvador, British Virgin Islands, US Virgin Islands, Caribbean Netherlands, Turks And Caicos Islands and Zimbabwe.
Other nations besides the United States use the U.S. dollar as their official currency. For instance, Panama has been using the dollar alongside the Panamanian balboa as the legal tender at a conversion rate of 1:1. Ecuador, El Salvador, and East Timor all adopted the currency independently. The former members of the U.S.-administered Trust Territory of the Pacific Islands, which included Palau, the Federated States of Micronesia, and the Marshall Islands, chose not to issue their own currency after becoming independent, having all used the U.S. dollar since 1944. Two British dependencies also use the U.S. dollar: the British Virgin Islands and Turks and Caicos Islands. The islands Bonaire, Sint Eustatius and Saba, now collectively known as the Caribbean Netherlands, adopted the dollar on January 1, 2011, as a result of the dissolution of the Netherlands Antilles. The U.S. dollar is an official currency in Zimbabwe, along with the Euro, the Pound Sterling, the Pula, the Rand, plus several other currencies.
USD - Market View
The “big dollar trade of 2017” continues to crumble.
The trajectory for this year’s dollar trend was seemingly set in the first month when the currency recorded its worst January performance since 1987. “Start as you mean to go on,” as the saying goes.
With its close of 92.57 on August-31, the US Dollar Index remarkably posted its sixth consecutive month of losses; a rather depressing feat that was last achieved between October 2002 and May 2003 (an eight-month sequence). On September 4th, the index’s year-to-date loss stood at 9.5%.
Notable dollar exchange rates in September included USD/CAD, which fell to a 26-month low of 1.234. In Asia, USD/THB fell to a 28-month low of 33.13.
Analysts had been so positive about the dollar’s prospects at the start of the year, with one Citi Bank analyst describing a long dollar position as the “greatest FOMO [fear of missing out] trade of all time,” largely on the back of pledges by President Trump to implement highly inflationary policies, none of which had materialized at the time of this report.
Remarkably, US CPI growth fell below analyst expectations for five consecutive months between April and August (data for March to July) – a development which cast a large shadow over the previously accepted trajectory for US interest rates. In early September, the probability indicated by derivatives markets of a further quarter-point hike by the Federal Reserve in 2017 was just 38%.
Outlook: Long-term Dollar Index charts show significant technical support at 92.0 and a monthly close below this level (avoided in August) would likely indicate a very dark period ahead for the world’s reserve currency.
USD/EUR - 16:01 EDT
1 Day 1 Week: United States Dollar was up against the Euro with the USD/EUR at 0.8423, a rise of 1.01% and also up for the last 7 days with a rise of 0.7%.
3 Month Trend: USD/EUR is trading lower in the last 3-month range [Hi:0.8969, Lo:0.8297] and for the quarter is down -7.59%.