Name: USD, United States Dollar, US$-American Dollar, Greenback
Denominations: $1, $5, $10, $20, $50, $100, (There are also $2 notes which are seldom used, and notes ranging from $500-100,000 that are not in active circulation.) 1 ¢, 5 ¢, 10 ¢, 25 ¢ and infrequently used 50 ¢ and $1.
What factors affect it?
As with the Australian Dollar, the value of the US Dollar relies heavily on the supply and demand of imports and exports; this information is monitored by the US trade balance report. If the US is shown to have a high export value, and exports exceed imports to create a trade surplus, it increases demand for the Dollar as nations importing goods from the US need to pay for them. However, if America falls victim to high rates of unemployment—as was seen during the recession in 2007 when over eight million citizens were made redundant—the Dollar is obviously affected. Recessions can be caused by many factors, from housing bubbles to reduced demand for a country’s products (when the level of imports exceeds the level of exports it is known as a trade deficit). A weaker economic outlook lends to the possibility of foreign investors selling their accrued stocks or bonds to gain back money in their own currency, therefore making the US Dollar weaker. However, if investors believe the US economy is strong they will invest in the domestic currency and thereby make the Dollar stronger and more desirable. If America suffers from a trade deficit it means that its goods are not required, however if America has a trade surplus it will mean that its products are desirable and the Dollar will strengthen. Retail sales and industrial production figures throughout the country can also affect the Dollar, can alterations to Government policy. Potential investors are attracted to a steady government with stable policies, however the prospect of war, terrorism or social unrest can cause the ‘Greenback’ to weaken.