The US Dollar or American Dollar is the official currency of the United States and all of its territories! It may also be used as other countries de facto and reserve currency. It originates from the Spanish milled dollar. The unit or currency actually had been referenced in the Constitution of the United States.
The US Dollar contract as we know it began in 1973 as a measurement of strength in comparison to a basket of currencies. Those making up the US Dollar were:
The Euro FX (EUR) weighted at 57.6 %
The Japanese Yen (JPY) weighted at 13.6 %
The Pound Sterling (GBP) weighted at 11.9 %
The Canadian Dollar (CAD) weighted at 9.1 %
The Swedish Krona (SEK) weighted at 4.2 %
The Swiss France (CHF) weighted at 3.6 %
The Dollar has traded as high as $164.72 in 1985 and as low as $70.69 in 2008. It has retained a premier status against many world currencies as a safe-haven currency used in import/export trade, swaps, hedges and carry trades. The quantitative easing programs that have been introduced over the past few years have pressured the US Dollar weighing on its strength. Now, after US Fed Chairman Ben Bernanke has thought that an end date may be in sight some time perhaps September of 2013 through perhaps Mid-2014, the US Dollar may rise and retain its strength.
Read more analysis at: http://www.futuresknowledge.com/featured/the-us-dollar-reigns-as-the-premier-currency/
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