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US Dollar Guide (USD): Rates, Travel & Money Transfers

Learn how the US dollar works, what moves USD exchange rates and how travellers, expats and businesses can compare conversion costs.

The US dollar (USD) is the official currency of the United States and the most important currency in global finance. It is widely used for international trade, cross-border borrowing, commodity pricing and central-bank reserves, so a broad move in USD can affect exchange rates and financial conditions around the world.

If you are travelling to the United States, receiving income in dollars or making an international payment, compare the total conversion cost rather than looking only at the advertised fee. The provider's exchange-rate margin, transaction fee and any receiving-bank charge can all affect the result.

US Dollar Quick Facts

Currency code: USD
Currency symbol: $ or US$ when it needs to be distinguished from other dollars
Central bank: Federal Reserve System
Common coins: 1¢, 5¢, 10¢, 25¢, 50¢ and $1
Banknotes currently issued: $1, $2, $5, $10, $20, $50 and $100
Exchange-rate system: Floating against other major currencies

The US dollar remains the largest disclosed reserve currency. The International Monetary Fund reported that USD represented about 57.1% of allocated global foreign-exchange reserves in the first quarter of 2026. That is well below the stale 62% figure sometimes quoted from older data, but still far ahead of any other individual currency.

Is the US Dollar Strong or Weak?

There is no single USD exchange rate. The dollar can rise against one currency while falling against another, so check the pair that matches your transfer, income or travel budget.

Check the US Dollar Index

The US Dollar Index (USDX or DXY) measures USD against a fixed basket of six currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. A rising index means the dollar is strengthening against that basket; a falling index means it is weakening.

The index began at 100 in 1973. Because the euro has the largest weight and major trading partners such as China and Mexico are not included, DXY is useful but not a complete measure of the dollar's global value.

Read our guide to the US Dollar Index for its weights, history and limitations.

Compare USD with a Broader Range of Currencies

The live module below shows how USD has performed against major trading and travel currencies over the past 12 months.

You can also view live US dollar exchange rates and open an individual pair for charts, forecasts and provider comparisons.

US Dollar Pairs to Watch

EUR/USD — the most closely watched major pair, shaped by Federal Reserve and European Central Bank expectations
GBP/USD — influenced by US and UK rates, inflation and growth
USD/JPY — particularly sensitive to interest-rate differences and policy signals
USD/CAD — important for North American trade and also affected by commodity markets
AUD/USD — often responsive to global growth sentiment and commodity demand

What Moves the US Dollar?

Federal Reserve policy and interest rates

Expected returns on dollar assets are a major driver of demand for USD. When markets expect US interest rates to be higher relative to those elsewhere, the dollar may receive support. Inflation, employment and growth data matter partly because they change those policy expectations.

Demand for safe and liquid assets

US Treasury markets are large and liquid, and many international obligations are denominated in dollars. During periods of financial stress, demand for dollar cash and high-quality US assets can rise, even when the source of the uncertainty is in the United States.

US growth, trade and fiscal expectations

The relative strength of the US economy, import and export flows, government borrowing and expectations for fiscal policy can all influence capital flows. Their effect on USD is not always one-directional because markets may focus on growth, inflation or risk at different times.

Global dollar demand

Companies, governments and financial institutions outside the United States borrow, invoice and settle transactions in USD. Changes in global trade, debt servicing and access to dollar funding can therefore move the currency beyond what domestic indicators alone would suggest.

How to Get a Better USD Exchange Rate

The mid-market rate is the wholesale benchmark between buy and sell prices. Retail customers are generally offered a different rate that may include a provider margin, plus separate fees.

Before converting money:

1. Compare the customer rate with the mid-market rate at the same time.

2. Check the transfer fee, card surcharge and possible intermediary or receiving-bank fees.

3. Compare the final amount received, not a "zero fee" claim in isolation.

4. Confirm the delivery method and estimated arrival time.

5. For a large or recurring payment, consider whether staged transfers, a rate alert or an available risk-management tool suits your needs.

The calculator and comparison table below estimates the total cost of exchanging USD with available providers.

Quoted rates and fees can change. Check the provider's final quote before confirming a transaction.

Which Countries Use the US Dollar?

Several economies use USD as official currency or legal tender. Sovereign examples include Ecuador, El Salvador, Panama, Timor-Leste, the Federated States of Micronesia, the Marshall Islands and Palau. US territories use it as well, and it circulates officially in some Caribbean territories.

The arrangements are not identical. Panama issues balboa coins alongside US notes, for example, while some Pacific economies issue local coins. Zimbabwe operates a multi-currency system in which USD is one accepted currency rather than its sole national currency.

In other destinations, businesses may informally accept dollars, especially in tourist areas, but the exchange rate can be poor and change may be returned in local currency. USD acceptance should not be assumed where it is not legal tender.

Which Currencies Are Pegged to the US Dollar?

A USD peg is different from adopting the dollar. Under a peg, a country or monetary authority issues its own currency but manages it at a fixed rate or within a narrow band against USD.

Examples include the Hong Kong dollar, Saudi riyal, United Arab Emirates dirham, Bahraini dinar, Omani rial and Belize dollar. Arrangements can change, and not every stable-looking rate is a pure USD peg. Kuwait, for example, manages the dinar against an undisclosed basket rather than the US dollar alone.

Pegged rates can reduce day-to-day volatility, but retail customers can still pay exchange-rate margins and fees.

Using US Dollars in the United States

Cards are widely accepted, but cash can still be useful for tips, small businesses, transport or backup. Sales tax is commonly added at checkout rather than included in the shelf price, so the final amount may be higher than the displayed price.

When a terminal offers to charge your home currency instead of USD, compare the displayed conversion before accepting. This service, known as dynamic currency conversion, lets the merchant or its payment provider set the exchange rate. Paying in USD usually leaves the conversion to your card network and issuer, but your card's foreign-transaction fee still matters.

Before travelling, check your card's overseas fees, ATM charges and withdrawal limits. If an ATM offers its own conversion, review both options rather than assuming the displayed home-currency amount is better.

Sending Money To or From the United States

USD transfers are common for migration, pensions, property, tuition, investments, supplier invoices and overseas payroll. The cheapest suitable option can vary with the amount, destination, payment method and required delivery speed.

Banks may be convenient, while specialist transfer providers may offer different rates, fee structures or payment tools. Always compare like for like and check whether the recipient needs an exact USD amount. International USD payments can also involve correspondent-bank deductions, so ask whether all fees are known in advance.

Sending International Transfers with OFX

OFX at a glance:

OFX has a 20-year history and is one of the largest foreign exchange specialists in the world. It offers a complete foreign exchange solution, including discounted money transfers, currency hedging tools, recurring transfers, a multi-currency account for online sellers and much more.

OFX grew from the idea that there had to be a better, fairer way to move money around the world. That was over 20 years ago, and since then over 1 million customers have trusted OFX with transfers in 50+ currencies to over 170 countries.

OFX don’t just offer great rates, they believe real help from real people counts. That’s why their clients get the best of both worlds – a seamless digital platform, combined with 24/7 phone access to currency experts.

When it comes to moving money, peace of mind is important. OFX is monitored by over 50 regulators globally and work within a network of carefully selected banking partners. So whether you are sending money to friends and family abroad, or doing business across borders, OFX can get your money where it needs to go. Fast, simple, secure.

Learn more about OFX

Using OFX for money transfers offers the benefit of lower fees and competitive exchange rates compared to traditional banks, making international transactions more cost-effective.

Additionally, OFX provides 24/7 customer support, a range of transfer options including spot and forward contracts, and a user-friendly online platform, enhancing convenience and flexibility for global financial transactions.

What Savings Can I Expect with OFX?

OFX offers exchange rates that beat the banks, and are close or equal to the rates offered by the industry’s lowest-cost services.

When you register via our OFX 0.5% exclusive offer for BER users the cost of sending, for example, 5,000 US dollars to Australia equates to 0.5 percent of the transferred amount, or roughly US$25. You’d pay the same 0.5 percent for the same amount to be sent to Europe and around 1 percent if sending to India. This compares with 4–7 percent with the banks.

For other currency routes we looked at (routes involving AUD, INR, GBP, EUR, SGD and USD), the average cost of an international payment with OFX was 0.6 percent of the transferred amount. This is exceptional if compared with banks but can be a little more expensive than what is charged by the industry’s lowest-cost services, although such services do not offer the same benefits and customer service as OFX.

What Do US Dollar Banknotes Look Like?

Federal Reserve notes currently issued come in $1, $2, $5, $10, $20, $50 and $100 denominations. Older designs can remain valid, so a genuine note does not become worthless simply because a newer design is in circulation.

The notes are similar in size and predominantly green, although newer designs use additional colours and security features. Check the denomination carefully, especially in poor light.

Front and reverse designs of US dollar banknotes

Is the US Dollar Stable?

USD is highly liquid and central to global finance, but it is not stable against every currency at all times. Federal Reserve expectations, market stress, US fiscal and growth prospects, and global demand for dollar funding can all cause material moves.

For travellers, expats and businesses, forecasting the perfect exchange rate is difficult. A more practical approach is to compare the full cost, set a target budget and manage the timing risk of large payments rather than relying on a single market prediction.

Sources and Methodology

Reserve-share data comes from the IMF's Currency Composition of Official Foreign Exchange Reserves, Q1 2026. Currency-market context uses the BIS foreign-exchange turnover survey, and banknote denominations use the Federal Reserve's currency guidance. Performance modules and comparison tables use live BER data and may update independently of the article text.