The abbreviation for the U.S. dollar and Japanese yen (USD/JPY) pair or cross for the currencies of the United States (USD) and Japan (JPY). The currency pair shows how many Japanese yen (the quote currency) are needed to purchase one U.S. dollar (the base currency).Trading the USD/JPY currency pair is also known as trading the "gopher". |||The value of the USD/JPY pair is quoted as 1 U.S. dollar per x Japanese yen. For example, if the pair is trading at 1.50 it means that it takes 1.5 yen to buy 1 U.S. dollar.The USD/JPY is affected by factors that influence the value of the U.S. dollar and the Japanese yen, both in relation to each other, and to other currencies. For this reason, the interest rate differential between the Federal Reserve (Fed) and the Bank of Japan (BoJ) will affect the value of these currencies when compared to each other. For example, when the Fed intervenes in open market activities to make the U.S. dollar stronger, the value of the USD/JPY cross could increase, due to a strengthening of the U.S. dollar when compared to the Japanese yen. The USD/JPY tends to have a positive correlation with the USD/CHF and USD/CAD currency pairs because they all use the U.S. dollar as the base currency.
The abbreviation for the U.S. dollar and Swiss franc (USD/CHF) pair or cross for the currencies of the United States (USD) and Switzerland (CHF). The currency pair shows how many Swiss francs (the quote currency) are needed to purchase one U.S. dollar (the base currency).Trading the USD/CHF currency pair is also known as trading the "Swissie". |||The value of the USD/CHF pair is quoted as 1 U.S. dollar per x Swiss francs. For example, if the pair is trading at 1.50 it means that it takes 1.5 Swiss francs to buy 1 U.S. dollar.The USD/CHF is affected by factors that influence the value of the U.S. dollar and/or the Swiss franc in relation to each other and other currencies. For this reason, the interest rate differential between the Federal Reserve (Fed) and the Swiss National Bank (SNB) will affect the value of these currencies when compared to each other. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the USD/CHF cross could increase, due to a strengthening of the U.S. dollar when compared to the Swiss franc. The USD/CHF tends to have a negative correlation with the EUR/USD and GBP/USD currency pairs. This is due to the positive correlation of the euro, Swiss franc and the British pound.
The abbreviation for the U.S. dollar and Canadian dollar (USD/CAD) currency pair or cross. The currency pair tells the reader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency). Trading the USD/CAD currency pair is also known as trading the "Loonie". |||The value of the USD/CAD pair is quoted as 1 U.S. dollar per X Canadian dollars. For example, if the pair is trading at 1.50 it means that it takes 1.5 Canadian dollars to buy 1 U.S. dollar.The USD/CAD is affected by factors that influence the value of the U.S. dollar and/or the Canadian dollar in relation to each other and other currencies. For this reason, the interest rate differential between the Federal Reserve (Fed) and the Bank of Canada (BoC), will affect the value of these currencies when compared to each other. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the USD/CAD cross will increase because it will take more Canadian dollars to purchase the stronger U.S dollar.The USD/CAD tends to have a negative correlation with the AUD/USD, GBP/USD and the NZD/USD currency pairs because they are quoted in U.S. dollars.
The currency abbreviation for the United States dollar (USD), the currency for the United States of America. The United States dollar, or U.S. dollar, is made up of 100 cents and is presented with the symbol $ or US$ to differentiate it from other dollar-based currencies. The U.S. dollar is considered a benchmark currency, and is the currency used the most in transactions across the world. The currency is actually used as an official currency in many countries outside of the U.S., while many others use it alongside their own as an unofficial currency. |||The United States dollar was originally created through the Coinage Act of 1792, which specified that a dollar of currency would be equal to between 371 and 416 grains of silver, and an "eagle" (US$10) at between 247 and 270 grains of gold. Gold coins with equivalent weights were used, and based on this system, the value of the dollar (in purchasing power), would be equivalent to the purchasing power of the gold or silver on which it was based.In 1933, gold coins were taken back, and the gold standard was changed, setting the price of a troy ounce to $35. This gold standard continued until 1968, when a series of pegs to gold were put in place until 1975. In January of 1975, the U.S. dollar was removed from the gold standard, and was allowed to float freely on the international currency markets.
An attempt by a country's monetary authorities to influence exchange rates and its money supply by not buying or selling domestic or foreign currencies or assets. This is a passive approach to exchange rate fluctuations, and allows for fluctuations in the monetary base. |||If the central bank purchases domestic currency by selling foreign assets, the money supply will shrink because it has removed domestic currency from the market; this is an example of a sterilized policy. An unsterilized policy allows for the foreign-exchange markets to function without manipulation of the supply of the domestic currency; therefore, the monetary base is allowed to change.
The currency abbreviation for the Vanuatu vatu (VUV), the currency for Vanuatu. The Vanuatu vatu has no subunit, and is often presented with the symbol Vt. Vanuatan residents refer to a notional dollar that equals 100 vatu, which comes from the period of 1966 to 1973 when the New Hebrides franc (the currency at the time) was pegged to the Australian dollar (AUD) at a rate of 100 francs to 1 Australian dollar. |||The vatu was first introduced to replace the New Hebrides franc at par after Vanuatu claimed its independence. After this replacement, the Australian dollar (on which the franc was valued) was no longer accepted as a currency in the nation.
An exchange of cash flows that allows investors to reduce or increase their exposure to the risk of a decline in the purchasing power of money. In a zero coupon inflation swap, which is a basic type of inflation derivative, an income stream that is tied to the rate of inflation is exchanged for an income stream with a fixed interest rate. However, instead of actually exchanging payments periodically, both income streams are paid as one lump-sum payment when the swap reaches maturity and the inflation level is known. |||The currency of the swap determines the price index that is used to calculate the rate of inflation. For example, a swap denominated in U.S. dollars would be based on the Consumer Price Index of the United States, while a swap denominated in British pounds would typically be based on Great Britain’s Retail Price Index. Other financial instruments that can be used to hedge against inflation risk are real yield inflation swaps, price index inflation swaps, Treasury Inflation Protected Securities (TIPS), municipal and corporate inflation-linked securities, inflation-linked certificates of deposit and inflation-linked savings bonds.
The currency abbreviation for the South African rand (ZAR), the currency for South Africa. The South African rand is made up of 100 cents and is often presented with the symbol R. The rand comes from the word "Witwatersrand" which means "white waters ridge". Johannesburg, the location of the majority of South Africa's gold deposits, is located on this ridge. |||The South African rand was first introduced at the same time as the Republic of South Africa was established. The rand replaced the South African pound at a rate of 2 rand to 1 pound. From introduction until 1982, the rand was actually more valuable than the U.S. dollar, after which political pressure and sanctions caused the currency to lose value.