Being the world’s largest economy, the US has an enormous impact on the global economic situation. But any large events happening in different countries also influence the US economic health. Great scandals regarding Italian banks, weakening economic growth in China, and upcoming referendum on the UK membership in the EU bear on the United States. While economic growth rates are decelerating in other countries, all investors’ hopes cling to the US. The American growth is not the fastest, but it is stable; and experts forecast that it will reach the mark of 2 percent in the next quarter.
The US dollar is still the most-traded currency in the world. It makes up 63 percent of all forex reserves. Importance of the greenback in the currency market does not raise a single question as around 87 percent of all deals involve the US dollar. Besides, some goods are priced solely in US dollars and to purchase such goods, you need USD first. These facts ensure high demand for the greenback. Global risks also boost the currency’s popularity as a safe-haven asset. The strong dollar cheers up ordinary Americans, while discouraging producers and exporters. The Federal Reserve is, of course, aware of this, but it will hardly change its plans abruptly. That is why the nowadays global economy has only one king – the US dollar.
