The US dollar is the world's primary reserve currency, which means that it is the most widely used currency for international transactions.
This gives the US dollar a significant influence on the global economy.1. A strong dollar makes it more expensive for foreign countries to buy US goods and services, which can hurt their economies.
A weak dollar makes it cheaper for foreign countries to buy US goods and services, which can help their economies.
When interest rates in the US are low, it discourages foreign investment, which can weaken the dollar.
The value of the dollar can also be affected by political and economic events in the US and around the world.