The US Influence on Global Financial Markets
The United States plays an undeniable and powerful role in the global financial landscape. As the world’s largest economy and a leader in global finance, the U.S. influences financial markets worldwide in multiple ways. This influence extends to everything from currency markets and international trade to global investments and economic policies. In this article, we explore the key areas where the United States exerts significant influence on global financial markets, driving trends, policy decisions, and economic outcomes across the globe. The U.S. Dollar as the Global Reserve Currency One of the most significant ways the United States influences global financial markets is through the U.S. dollar (USD) , which serves as the world’s primary reserve currency. This status has been built over decades, particularly since the end of World War II, when the U.S. emerged as the dominant economic and military power. The Bretton Woods Agreement in 1944 cemented the dollar’s position as the ...