USD, or United States Dollar, is the official currency of the United States and its territories. It's also widely used as a reserve currency globally, playing a significant role in international trade and finance. The USD is represented by the dollar sign ($) and is often paired with the ISO code 'USD' for clarity. The Federal Reserve System (the Fed) is responsible for issuing and regulating the USD. The currency is divided into 100 cents and is available in both paper and coin denominations. Fluctuations in the USD's value can significantly impact international trade, investment, and the overall global economy. The currency's strength or weakness is determined by economic factors, including inflation, interest rates, and global demand. The USD is a crucial instrument for measuring economic performance and converting value across the world.
USD meaning with examples
- The company reported a profit of $5 million USD this quarter, demonstrating strong financial performance. This figure, converted to other currencies, reflected their global success.
- Inflation data showed a rise, leading to speculation that the Federal Reserve would raise interest rates, affecting the USD's value against other currencies, like the Euro.
- The travel agency advertised a package deal to Europe for $2,500 USD, inclusive of flights and accommodation. Travelers often compare such prices in their local currencies.
- The commodities market saw fluctuating prices for gold, priced in USD per ounce. Investors watch these trends for indicators of global economic stability.
- Many international transactions are conducted in USD, highlighting the currency's importance in global commerce, especially for major exports like aircraft, machinery and pharmaceuticals.