Why do we compare our country’s currency to that of US’s and determine our currency’s value?
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Lots of good answers here on why the USD is a benchmark currency, but the second part of your question is based on a false premise…other country’s currency value is *not* determined by the USD’s value.
There is an exchange rate between every currency and every other currency that determines the relative value. It’s really common to see exchange rates presented against USD just because USD is so common and basically accepted anywhere at anytime, so it’s a convenient “intermediate” to compare any two currencies but that does *not* set a particular currency’s value. That’s set by relative demand and supply for that particular currency.
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