The US dollar is the most widely used currency in the world. But that doesn’t mean it’s the strongest. Experts like Kavan Choksi say that the dollar isn’t doing so hot compared to other major world currencies. So here’s a look at how the US dollar stacks up against other major currencies.
The Euro
The euro is the official currency of 19 of the 28 member states of the European Union. It’s also the world’s second-largest reserve and most traded currency. In recent years, the euro has been on a tear, and it currently sits at about $1.18 to one euro.
The British Pound
The pound sterling is the fourth most traded currency in the world and currently sits at about $1.32 to one pound. The British pound has historically been a strong currency and has only gotten stronger in recent years. Brexit has caused some market uncertainty, but the British pound remains a force to be reckoned with.
The Japanese Yen
The Japanese yen is currently at about 108 yen to one US dollar. The yen has been on a roller coaster ride over the past few years, but it has slowly been gaining strength against the dollar since 2016.
The Canadian Dollar
The Canadian dollar is currently at about $0.79 to one US dollar. The Canadian dollar has been downswing recently, but it is still a strong currency. The Canadian dollar is a floating currency, meaning its value is determined by the market. The main factor that affects the Canadian dollar’s value is the oil price. Canada is a major oil producer, and the falling price of oil has negatively impacted the Canadian economy. However, the Canadian dollar has remained relatively stable despite the volatility in the oil markets. This is partly due to the fact that Canada has a diversified economy and is not as reliant on oil as other countries. The Canadian dollar is also supported by strong trade relations with the United States, Canada’s largest trading partner. Overall, the Canadian dollar is a strong currency that is expected to remain stable in the future.
The Swiss Franc
The Swiss franc is about $1.01 to one franc. The Swiss franc is a haven currency, which means that it tends to do well during times of economic uncertainty.
The Chinese Yuan
The Chinese yuan is currently trading at about 6.89 yuan to one US dollar. The yuan has been slowly getting stronger against the dollar since 2014, but it still remains a relatively weak currency.
Final Word
So, what does all this mean for the US dollar? Well, it’s not looking too good. The US dollar has been losing ground against major world currencies for some time now, and there’s no sign that this trend is going to change anytime soon. So, if you’re planning on traveling abroad or doing business in another country, you may want to consider converting your dollars into another currency first.
