Why is the U.S Dollar so much stronger than a majority of other currency around the world?

Question

I have always wonder why its so much stronger ? when you go to Japan, everything is cheaper in a sense and the U.S dollar means more in Japan. Why is that ?

In: Economics

Answer 1

The U.S. dollar is strong because it’s the world’s primary reserve currency, used in global trade and held by central banks around the world. The large, stable U.S. economy, political stability, and trust in its financial system also boost demand for the dollar, making it stronger compared to many other currencies.