What you should know about interest rates, the U, the Fed and more, by Tim Harford, Wall Street Journal Editorial BoardThe dollar is the world’s reserve currency, a symbol of global stability and prosperity, the world price of everything from car parts to toilet paper.
It’s used as a hedge against inflation, a way to buy stocks or a store of value against an imminent currency collapse.
It has a price tag of $1.16, or about 0.5 percent of global trade volume.
That’s about the same as the euro, which is around half as much and is traded around the world.
The euro’s current value is roughly $1,099.99, according to the Bloomberg Terminal Exchange, a Bloomberg news service.
But the dollar’s current price is a drop in the bucket compared with other currencies.
For instance, the dollar was $1 to $1½ against the euro on July 8, according in data from the Bank for International Settlements.
Its value dropped by about 1.5 percentage points to $12.40, according data from Euromonitor International.
It’s worth noting that the euro has fallen over the past year, to a value around $1 on March 6, 2016, from $1¾ on March 13, 2015.
The dollar has also dropped.