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US Dollar Currency exchange and Transfer
The US Dollar
The US Dollar is the worlds foremost currency and accepted in many countries outside the USA. The United States of America is a large country and is the key economy in the world. Therefore the US trades with countries around the world, both importing goods to the USA and exporting goods from the USA. The US Dollar rate is therefore very important not just for the US economy but the US Dollar rate also influences the world economy.
There are many key exchange rates for the US dollar, influenced by its trading partners. The US and Canada are neighbours and the US dollar rate against the Canadian Dollar ( USD v CAN) is very important as is the Canadian Dollar to US Dollar. The UK is an old established US import and export market and so the British pound to US Dollar exchange rate (GBP v USD) is key as is the US Dollar Sterling rate.
The advent of the eurozone and the introduction of the euro has meant the sum of the parts of Europe is suddenly a significant trading zone. Therefore the US Dollar to euro (USD v EUR) exchange rate and the euro against the dollar is now a major economic consideration. The USA has been trading with Japan for many decades and so the US Dollar to Yen rate and the yen against the dollar rate is also important.
When trading internationally the world exchange rates can have a significant effect on your bottom line. The exchange rates are a measure of many factors on an economy and are in part a reflection of where worldwide investors want to invest their money. Returns on investment and interest rates as well as economic growth are key factors. When an economy is doing well it is likely that the currency will strengthen - ie more people will want to invest in the country and the currency will be scarcer and therefore more expensive. If an economy is not doing well then the currency will weaken. In late 2003 for example, many foreign investors in the USA had concerns about the trade deficit and despite strong economic growth they were looking to invest in Europe and the Far East. Subsequently the US dollar euro rate, the US dollar yen rate and the US Dollar sterling rate reached 10 year record low levels as the dollar weakened against these currencies.