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.
The US Dollar Index (DXY) fell in six of the year’s first seven months and in early August it fell to a fifteen-month low of 92.55. Two weeks later it had recovered slightly to the mid 93s but this was still far from January’s high of 103.80.
With two weeks of August gone, the dollar was buying EUR 0.85, AUD 1.275 and CAD 1.27. It remained close to multi-month or multi-year lows against many currencies.
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, but midway through the eighth month of the year these policies were yet to materialize and the outlook for US inflation had taken a turn for the worse.
Remarkably, US CPI growth fell below analyst expectations for five consecutive months between April and August (data for March to July).
Concerns over inflation have cast a shadow over the previously accepted trajectory for US interest rates. In mid-August, the probability indicated by derivatives markets of a further quarter-point hike by the Federal Reserve in 2017 stood at just 35%.
USD/EUR - 19:00 EDT
1 Day 1 Week: United States Dollar was down against the Euro with the USD/EUR at 0.8492, a drop of -0.29% but remains up for the last 7 days with a rise of 0.34%.
3 Month Trend: USD/EUR is trading lower in the last 3-month range [Hi:0.8991, Lo:0.8412] and for the quarter is down -4.59%.