While the dollar and euro remain major reserve currencies, the dominance of the former is beginning to wane. Central banks are feeling the need to diversify into non-traditional currencies.

30 April

Global central banks are increasingly abandoning dollar — Goldman Sachs

Reuters: inventory build-up ahead of tariffs could hit the growth of the US economy

As reported by Reuters journalists, in the first quarter, the US economy experienced a flood of imported goods, brought hastily into the country by companies in an attempt to make it in time before the introduction of high tariffs by President Donald Trump.

30 April

Reuters: inventory build-up ahead of tariffs could hit the growth of the US economy

US exit from IMF may hinder dollar's status as global reserve currency

The dollar is currently facing its steepest decline since 1989, largely due to Trump’s economic policies. The most pressing threat to the greenback’s stability is a potential US exit from the International Monetary Fund (IMF).

30 April

US exit from IMF may hinder dollar's status as global reserve currency

Chinese tariffs on US goods put American jobs at risk

The US-China Business Council reports China is now slapping tariffs of at least 125% on all American exports, worth a total of $140.7 billion. This move puts over 862,000 US jobs that support the exports at serious risk.

30 April

Chinese tariffs on US goods put American jobs at risk

US job openings slid in March to 7.19 million to sit near four-year low

According to the US Bureau of Labor Statistics, the number of job openings reached 7.19 million in March, down from 7.48 million a month earlier. Additionally, February's reading was revised downward from the 7.57 million vacancies initially reported.

30 April

US job openings slid in March to 7.19 million to sit near four-year low

US consumer confidence is falling due to Trump’s trade policy

Consumer confidence in the US reached its lowest level over the last 5 years in April.

30 April

US consumer confidence is falling due to Trump’s trade policy

The dollar is the monetary unit of the United States (US). It is also used as the official currency by some other countries (Ecuador, Zimbabwe, El Salvador). The dollar holds a leading position in the world economy.

At the moment, the dollar dominates the system of international settlements with almost 50% share (the euro ranks second with less than 25%). Meanwhile, the dollar's dominance is even more pronounced in the financial sector, on the foreign exchange market, and in the government reserves.

The US currency (USD) quotes, as well as those of its foreign counterparts, depend primarily on the economic and political situation in the issuing country. The US authorities, such as the Federal Reserve System (the Fed) and the Department of the Treasury, influence the dollar exchange rate by changing their monetary, fiscal, budget, and tax policies.

Moreover, the value of the dollar may be significantly affected by the latest news and the international situation. Global economic problems and rising geopolitical tensions have historically been favorable for the US currency, as investors consider it one of the major safe-haven assets, along with gold. In contrast, during periods of strong economic growth and a relatively calm global environment, the demand for the dollar tend to reduce.