US dollar is one of the most influential currencies in the world, thus there are a lot of factors that affect the currency and moreover each factor associated with it is important in order to establish the value of the currency. There are several economic analysts that look to maintain a balance between the investment and trading considering them as an important factor in determining the value of the currency.

US dollar is also among the currencies that have made its reputation in the forex market too, where it is known as USD and also popular as one of the leading currencies in the world. The US dollar is currently available in notes and both coins too, people can avail it for the bank. There is different denomination of dollars available, which includes, dime being one tenth of a dollar, cent being one hundredth of a dollar, mill being one thousandth of a dollar.

Whether, you are talking about the currency or commodities like coal, oil, gold and so on, it is the same for all. Definitely currency being regulated in large amount is going to lower the value of a currency. Likewise, when the amount of currency being circulated decreases, it does help in increasing the value of the currency.

A country's economic condition also has direct impact on the value of its currency. If economic status of the country is not good, the value of its currency will automatically decrease. There are major factors that affect the economic status of a country, which includes intensity of unemployment, width of consumer spending and the increase in business expansion, which occurs in a particular country.

US dollars being considered as the standard currency for trading in the world, slight changes in the value of US currency have a major effect on the economy of the overall world, which can be seen in the trading market of other countries. As a principle of inflationary, the reducing value of US dollar indicates the inflation, which leads to the increase in the prices of goods and services.

In order to have proper knowledge about the value of the US dollars, a US dollar index was also prepared in the early 70s to keep a check on it. Although dollar is dominating the trade market, however, it is only the US that treats US dollars as its official currency. The table has a fixed exchange rate with respect to the US dollar; moreover currencies of other countries are value at the fixed rate against the US dollar.

Changing political environment also plays an important role in determining the value of the currency. The effects of the political changes and relation on the economy of the country can be seen in the value of the currency. The political corruptions that happen in the country also affect the value of currency. Country's having politically corrupt people, are found to have reduced value of its currency.

The interest rates also play a major role in determining the value of US dollar, with higher interest rates the value increases and with lesser interest rates people tend to start investing on other currencies, thus the value of the American currency falls. Apart from the mentioned factors, there are several other factors that affect the value of the US dollar; however, it still is the most influential currency in the world.