The United State Dollar (USD):
The US Dollar is the currency of United States. Our currency rankings show that the most popular United States Dollar exchange rate is the USD to EUR rate. The currency code for Dollars is USD, and the currency symbol is $. The US central bank is called the Federal Reserve Bank (commonly referred to as "The Fed"). The USD is the most traded currency in the forex market and can be paired with all other major currencies.
The US Dollar is the most commonly converted currency in the world and is regularly used as a benchmark in the Forex market. As a major player in the currency market, it is held by nearly every central bank in the world. Additionally, the Dollar is used as the standard currency in the commodity market and therefore has a direct impact on commodity prices.
The USD currency continues to enjoy the leadership position among the reserve currencies of the world. However, with unprecedented money being pumped by the US Fed, questions are being raised about the valuation of the US dollar. The Euro and the Yen are struggling to keep their own house in order. The Yuan is still not open to the market which is limiting its popularity. Till we see another alternative emerge, the US dollar might continue to be the most important currency to follow. Traders will have to keep a close eye on the different reports indicating the economic health of the US and the US Fed’s monetary policies.
The Japanese Yen;
The yen JPY; also abbreviated as JP¥) is the official currency of Japan. It is also the third most traded currency in the foreign exchange market after the United States dollar and the Euro. It is also widely used as a reserve currency after the U.S. dollar, the euro, and the pound sterling.The Japanese yen has historically been popular as a funding currency among forex traders because of its low interest rate. For example, a trader will borrow Japanese yen and purchase a currency with a higher interest rate, such as the Australian dollar of New Zealand dollar. Other funding currencies include the Swiss franc, and in some parts, the U.S. dollar.
The conception of the yen was as a result of the influence of the Meiji government's modernization program of Japan's economy; which postulated the pursuit of a uniform currency throughout the country modeled after the European decimal currency system.
The USD/JPY is affected by factors that influence the value of the U.S. dollar and the Japanese yen, both in relation to each other and to other currencies. For this reason, the interest rate differential between the Federal Reserve (Fed) and the Bank of Japan (BoJ) will affect the value of these currencies when compared to each other. ]
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