The U.S. dollar (USD) is one of the most valuable currencies in the world. The euro is the main rival of the U.S. dollar in international markets. It was worth slightly more in 2020. That has not always been the case, with the euro-to-dollar rate fluctuating over the years.
In general, more valuable currencies tend to be stronger. That's because weak currencies lose value in the long run. However, some strong currencies, such as the Japanese yen (JPY), are less valuable because of the effect of inflation that occurred decades ago.
The exchange rates below are current as of May 2022.
Key Takeaways
- The U.S. dollar is one of the most stable and strong currencies in the world.
- It's used as a reserve currency for global trade and finance.
- Still, the currencies of some countries are more valuable, meaning that $1 is worth less than 1 unit of the foreign currency.
- A more valuable foreign currency does not necessarily mean that the foreign economy is larger or stronger.
- Exchange rates are set by a variety of factors, including the amount of money in circulation.
1. Euro: 1 EUR = 1.07 USD
As of May 2022, the euro (EUR) to U.S. dollar (USD) exchange rate was about 1 euro for $1.07. The U.S. dollar generally strengthened against the euro in 2020 and 2021. This strength makes European imports relatively less expensive in the U.S.
A weak currency is not always bad because it can help boost American exports. The European Central Bank (ECB), which sets monetary policy for the eurozone, has more independence from national governments than other central banks because it oversees the entire continent's monetary policy.
That independence helps keep the euro strong. However, it also contributed to the European sovereign debt crisis. During that time, some countries (such as Greece and Italy) found it difficult to enact specific policies (such as printing more money) to help stimulate their economies.
2. Cayman Islands Dollar: 1 KYD = 1.21 USD
The Cayman Islands dollar (KYD) was set via a fixed peg at 1.20 USD back in the 1970s. That may seem like an easy way to make a currency worth more than the U.S. dollar, but it's not necessarily so.
A currency peg can be difficult to maintain when local economic conditions are poor and the U.S. is raising interest rates. The country's status as a tax haven helps to support the value of the Cayman Islands dollar.
3. British Pound: 1 GBP = 1.25 USD
Bank of England (BOE) policymakers generally have kept pace with developments in other countries over the past several decades. They've kept the pound more valuable than the U.S. dollar.
The British pound (GBP) was historically worth more than the U.S. dollar. However, it declined against the USD during much of the 20th century. This decline reversed during the 1980s, and the British pound regained its old advantage over the U.S. dollar.
4. Jordanian Dinar: 1 JOD = 1.41 USD
Like the Cayman Islands Dollar, the Jordanian Dinar (JOD) has been pegged to the U.S. dollar at a higher value. The hope was that a stable rate of exchange would help to attract U.S. investment to Jordan.
It is crucial to remember that any country can peg its currency to the dollar at any value. However, the currency must keep its value relative to the U.S. dollar to maintain that peg. Jordan successfully did that during the first two decades of the 21st century.
Most major capitalist countries pegged their currencies to the U.S. dollar under the Bretton Woods System in the mid-20th century. In the early 21st century, many nations in the Caribbean and the Middle East still tied their exchange rates to the dollar.
5. Omani Rial: 1 OMR = 2.60 USD
Oman is yet another country that pegged its currency to the U.S. dollar at a fixed exchange rate (1 OMR to 2.60 USD). The Omani rial (OMR) has maintained its value against the dollar due to Oman's oil production and its historically tight monetary policy and financial restrictions.
Omani policymakers have generally restricted the money supply to protect the country against war and conflict in the Middle East. That has impacted the country's inflation rate. In addition, lending practices in Oman tend to favor risk-averse companies and business ventures.
6. Bahraini Dinar: 1 BHD = 2.65 USD
The Bahraini dinar (BHD) was pegged to the U.S. dollar at a slightly higher value than the Omani rial. The Bahraini dinar's yearly average has remained close to its current exchange rate since 2011 despite the significant effect that low oil prices had on Bahrain's economy. Bahrain's inflation rate was also modest and relatively stable.
7. Kuwaiti Dinar: 1 KWD = 3.26 USD
The Kuwaiti dinar (KWD) is often the most valuable foreign currency and it does not rely on a peg. It floats freely. Substantial oil production has helped to augment Kuwait's wealth and support the value of the Kuwaiti dinar.
Over the years, Kuwait amassed a significant sovereign wealth fund. The Kuwait Investment Authority manages this fund and helps to ensure that Kuwait remains prosperous.
Frequently Asked Questions
What Affects a Currency Exchange Rate?
Broadly speaking, the exchange rate for countries with free floating currencies is usually affected by the strength of a country's economy. In addition, though, exchange rates are relative, meaning they depend on the country with which you're comparing yours at any given time. So, economic conditions and policies (e.g., concerning inflation, interest rates, debt) in the respective countries can affect the exchange rate.
What Is the Exchange Rate for the Canadian Dollar and U.S. Dollar?
As of May 2022, one Canadian dollar (CAD) would get you about .77 U.S. dollars. Looking at it from the other way around, if you'll be traveling to Canada and need some local currency, you'd be able to get 1.28 Canadian dollars for just 1 U.S. dollar.
What's the Most Powerful Currency in the World?
The U.S. dollar is considered to be the most powerful or strongest currency in the world. There are a variety of reasons for this. The U.S. economy and government are consistently stable and strong. The have been for a long time. The U.S. dollar makes up the majority of the world's currency reserves. It's a trusted currency and accepted across the globe.
FAQs
Kuwaiti dinar (KWD)
The Kuwaiti dinar is the strongest currency in the world, with 1 dinar buying 3.26 dollars (or, put another way, $1 equals 0.31 Kuwaiti dinar). Kuwait is located on the Persian Gulf between Saudi Arabia and Iraq, and the country earns much of its wealth as a leading global exporter of oil.
What currencies are worth more than USD? ›
Kuwaiti dinar (KWD)
The Kuwaiti dinar is the strongest currency in the world, with 1 dinar buying 3.26 dollars (or, put another way, $1 equals 0.31 Kuwaiti dinar). Kuwait is located on the Persian Gulf between Saudi Arabia and Iraq, and the country earns much of its wealth as a leading global exporter of oil.
What are the top 10 most expensive currency? ›
List of Highest Currencies in the World 2023
| Currency | Value of | INR Value In Rs (As on May 2023) |
|---|
| Kuwaiti Dinar | 1 KWD | 269.32 |
| Bahraini Dinar | 1 BHD | 219.57 |
| Omani Rial | 1 OMR | 215.01 |
| Jordanian Dinar | 1 JOD | 116.67 |
6 more rows1. Kuwaiti dinar. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling. Kuwait is a small country that is nestled between Iraq and Saudi Arabia whose wealth has been driven largely by its large global exports of oil.
What country is the US dollar worth the least? ›
The Iranian Rial currently ranks as the lowest currency in the world in terms of its exchange rate with the US dollar.
What is the weakest currency? ›
1. Iranian Rial (IRR) 1 INR = 516 IRR. The Iranian rial tops the list of the cheapest currencies in the world. The fall in the value of the currency can be explained by various factors.
Which is stronger euro or dollar? ›
Euro: 1 EUR = 1.07 USD
As of May 2022, the euro (EUR) to U.S. dollar (USD) exchange rate was about 1 euro for $1.07. The U.S. dollar generally strengthened against the euro in 2020 and 2021.
Which is higher euro or dollar? ›
euro (EUR) The euro is the joint eighth strongest currency in the world with 1 euro buying 1.07 US dollars (or US$1 equals 0.94 euros). The euro is the official currency of the Eurozone, being 20 out of the 27 countries that form part of the European Union.
Where is the dollar the strongest? ›
Mexico/Mexican Peso
The Mexican Peso (opens in new tab) is the strongest it has been in five years. Even with this impressive growth, your dollar still has an advantage here. A meal in Mexico could cost you just $5. If you include a beer, you'll pay around $6.50.
Which countries money is strongest? ›
The highest currency in the world is none other than Kuwaiti Dinar or KWD. Initially, one Kuwaiti dinar was worth one pound sterling when the Kuwaiti dinar was introduced in 1960. The currency code for Dinars is KWD. The most popular Kuwait Dinar exchange rate is the INR to KWD rate.
The British pound (GBP) has enjoyed a nominal premium to the U.S. dollar (USD) for many years, owing both to historical convention and the Bank of England's willingness to intervene in times of crisis to defend the pound.
Why is the US currency so strong? ›
The dollar's value comes from the US' position as a critical global economic power and the country's political and economic stability. While it may hold less value than such currencies as the Swiss franc or the British pound, the dollar's global use makes it a more commercially viable currency.
Why is Kuwait dinar so strong? ›
Because demand for global oil is high, the demand to pay for it in Kuwaiti currency is also high, making the KWD a very valuable currency.
What is the most commonly used currency in the world? ›
1. US dollar (USD) The US dollar is by far the most traded currency in the forex market, with a global daily average trading volume of about $6.6 trillion. In fact, USD takes such a large precedent in forex markets that all 'major' currency pairs in foreign exchange trading include the dollar.
What country is 1 USD worth the most in? ›
Tunisia. One U.S. dollar is worth roughly 2.96 Tunisian dinar (as of Mar. 8, 2022). The North African country boasts a Mediterranean coastline, access to the Sahara desert, and is across the sea from Italy and France.
What countries are dumping the US dollar? ›
Notable examples include China, Russia, Brazil and the European Union, each of which has taken steps to reduce their reliance on the US dollar in international transactions and financial markets.
What happens if the US dollar collapses? ›
(1) the cost to import goods will skyrocket because foreign companies will no longer want dollars; (2) our government will lose its ability to borrow at its current levels – forcing it to raise taxes or print money to cover its shortfalls; (3) inflation will be at levels we have never seen because of higher import- ...
What currency has no value? ›
In monetary economics, fiat money is an intrinsically valueless object or record that is accepted widely as a means of payment. Accordingly, the value of fiat money is greater than the value of its metal or paper content.
What is the oldest currency? ›
The British pound is the world's oldest currency still in use at around 1,200 years old. Dating back to Anglo-Saxon times, the pound has gone through many changes before evolving into the currency we recognise today. The British pound is both the oldest and one of the most traded currencies in the world.
What is the cheapest dollar in the world? ›
The lowest currency in the world is Iranian Rial.
Euros to US Dollars conversion rates
| EUR | USD |
|---|
| 100 EUR | 107.85 USD |
| 500 EUR | 539.28 USD |
| 1,000 EUR | 1,078.56 USD |
| 5,000 EUR | 5,392.81 USD |
7 more rowsAfter reaching parity with the euro in 2022, the U.S. dollar has weakened modestly in 2023. The dollar has also lost ground against other currencies. Changes in the dollar's value on currency markets can affect results for U.S. investors who put money to work in global capital markets.
How much is $1 euro compared to US? ›
1 EUR = 1.08175 USD May 20, 2023 21:26 UTC
Check the currency rates against all the world currencies here. The currency converter below is easy to use and the currency rates are updated frequently.
Which is stronger US dollar or British pound? ›
Although the British pound is worth more than the U.S. dollar on a nominal basis, the dollar is still a stronger currency due to its status as the world's reserve currency and its greater volume of trading in the forex markets.
How many US dollars have the same value as 1 euro? ›
Are you overpaying your bank?
| Conversion rates Euro / US Dollar |
|---|
| 1 EUR | 1.10195 USD |
| 5 EUR | 5.50975 USD |
| 10 EUR | 11.01950 USD |
| 20 EUR | 22.03900 USD |
8 more rowsOverall, the currency that lost the most value overall against the U.S. dollar since 2011 was the Australian dollar, which fell from near parity in Q3 2011 to trading at 1.39 to the U.S. dollar in Q3 2021.
Is the dollar strong in Mexico now? ›
Basic Info. US Dollar to Mexican Peso Exchange Rate is at a current level of 17.60, down from 17.61 the previous market day and down from 20.31 one year ago. This is a change of -0.05% from the previous market day and -13.31% from one year ago.
Is euro stronger than dollar 2023? ›
EUR/USD forecast 2023
The euro to dollar pair began 2023 at $1.0662 and rose 1.49% throughout the month of January. Analysts forecast that for the month of March it could reach $1.10. “EUR/USD is predicted to reach 1.10 in March 2023, before declining to 1.08 September 2023 and holding at 1.08 in December 2023.
Is the dollar going to collapse? ›
It's not a likely outcome at all in most countries around the world, and that's particularly true for the United States. This is down to the U.S. dollar's status as the global reserve currency. So while technically the U.S. dollar could collapse, the chances of that happening any time soon are incredibly slim.
The U.S. dollar (USD) The euro (EUR) The Canadian dollar (CAD) The British pound sterling (GBP)
Who benefits from a strong currency? ›
A strong dollar makes imported goods cheaper for US consumers.
Where is the American dollar worth the most 2023? ›
Top 18 Places To Travel While the US Dollar Is Strong in 2023
| Austria | 1 USD – 0.93 Euro |
|---|
| Sweden | 1 USD – 9.78 Swedish Krona |
| Ireland | 1 USD – 0.93 Euro |
| Japan | 1 USD – 127.10 Japanese Yen |
| Turkey | 1 USD – 16.22 Turkish lira |
13 more rows6 days ago
LONDON — The British pound is the best performing G-10 (Group of Ten) currency of 2023, and some strategists believe the pound's rally can continue over the medium term.
What makes the U.S. dollar stronger or weaker? ›
The demand for the dollar increases when international parties, such as foreign citizens, foreign central banks, or foreign financial institutions demand more dollars. Demand for the dollar is usually high as it is the world's reserve currency.
Is Japanese currency higher than US? ›
1 USD = 137.9650026 JPY May 20, 2023 06:54 UTC.
When was the dollar at its highest value? ›
Historically, the United States Dollar reached an all time high of 164.72 in February of 1985. United States Dollar - data, forecasts, historical chart - was last updated on May of 2023.
What should I own if a dollar crashes? ›
Gold, Silver, and Other Precious Metals
When there is a political or economic disaster, precious metals are traditionally considered a safe haven asset. And there is a reason for that. Precious metals can't be printed like paper money, which makes them a good hedge against economic collapse.
What backs the US dollar? ›
Fiat standard
Today, like the currency of most nations, the dollar is fiat money, unbacked by any physical asset. A holder of a federal reserve note has no right to demand an asset such as gold or silver from the government in exchange for a note.
What happens if the US dollar is too strong? ›
The high U.S. dollar value bumps up the cost of interest payments for foreign entities and citizens with U.S.-based loans. And, while a stronger dollar is slowing the rate of inflation in the U.S., it is increasing the rate of inflation in much of the rest of the world. The global economy is weakening, as a result.
1 KWD = 3.261662 USD May 21, 2023 05:07 UTC
Check the currency rates against all the world currencies here.
Why is Jordan currency so high? ›
Why Is the Jordanian Dinar So Expensive? The Jordanian dinar is expensive because its currency is pegged to the USD. The country keeps fixed exchange rates and so its currency doesn't float from changes in supply and demand. Rather, the government has a tight monetary policy that restricts the value of the currency.
Is it expensive to live in Kuwait? ›
A family of four estimated monthly costs are 2,725.7$ (837.2KWD) without rent. A single person estimated monthly costs are 737.0$ (226.4KWD) without rent. Cost of living in Kuwait is, on average, 37.4% lower than in United States. Rent in Kuwait is, on average, 44.0% lower than in United States.
What is the strongest currency to buy? ›
The Kuwaiti Dinar (KWD) is the most valuable currency in the world. In Kuwait, the Indian expat group holds a strong presence which makes the INR to KWD rate the most popular Kuwait Dinar exchange rate. The Kuwaiti dinar continues to remain the highest currency in the world owing to Kuwait's economic stability.
What happens if dollar is replaced as world currency? ›
No matter the world reserve currency, you'll still owe your mortgage, credit card, car, and college tuition. The big difference is that those dollars will now be worth mere pennies. It will be two, three, or even ten times as hard to pay for anything, including food, water, shelter, etc.
Which currency pair is most profitable? ›
The Best Forex Major Currency Pairs
- EUR/USD: The Euro and US dollar. ...
- USD/JPY: The US dollar and Japanese Yen. ...
- GBP/USD: The British pound sterling and US dollar. ...
- USD/CHF: The US dollar and Swiss Franc. ...
- AUD/CAD: The Australian dollar and Canadian dollar. ...
- NZD/USD: The New Zealand dollar and US dollar.
Iranian Rial (IRR)
Today 1 Indian Rupee = 516.79 IRR. Currently, Iranian Rial is considered world's least valuable currency. This is the result of factors like political unrest in the country. The Iran-Iraq war and the nuclear program also played a huge part.
Where is the dollar strongest? ›
Mexico/Mexican Peso
The Mexican Peso (opens in new tab) is the strongest it has been in five years. Even with this impressive growth, your dollar still has an advantage here. A meal in Mexico could cost you just $5. If you include a beer, you'll pay around $6.50.
How much is US $1 million in Yen? ›
Are you overpaying your bank?
| Conversion rates US Dollar / Japanese Yen |
|---|
| 5000 USD | 689675.00000 JPY |
| 10000 USD | 1379350.00000 JPY |
| 100000 USD | 13793500.00000 JPY |
| 1000000 USD | 137935000.00000 JPY |
10 more rowsUS dollars are widely accepted on the island but you will pretty much always pay more than if you paid in Jamaican dollars. 5. The exchange rate while we were in Jamaica was about ~J$117 to US$1.
10 Countries Where the U.S. Dollar Goes the Furthest
- Portugal. smallredgirl/Adobe. ...
- Tunisia. Kira/Adobe. ...
- Spain. gatsi/Adobe. ...
- Peru. Pakhnyushchyy/Adobe. ...
- Bangladesh. giusparta/Adobe. ...
- South Africa. Thomas/Adobe. ...
- Vietnam. Hanoi Photography/Adobe. ...
- Mexico. JoseLuis/Adobe.
Iranian Rial (IRR)
The list of the top ten most worthless currencies globally is headed by the Iranian rial. It is the cheapest currency in the world right now. The rial has been used in Iran since 1932.
How much is $100.00 US dollars in Jamaica? ›
100 US Dollar is 15252.90 Jamaican Dollar.
Is the dollar losing its value? ›
We generally look at indices that compare the dollar's value to the values of a broad range of currencies, weighted according to the value of their trade with the U.S. By most measures the dollar has fallen by about 8% to 10% in both real and nominal terms since late last year.
What is the U.S. dollar backed by? ›
Today, like the currency of most nations, the dollar is fiat money, unbacked by any physical asset. A holder of a federal reserve note has no right to demand an asset such as gold or silver from the government in exchange for a note.
Where should I put my money if the dollar collapses? ›
One of the most straightforward ways to profit from a weaker dollar is to invest in other fiat currencies. Foreign-exchange traders can make bets on currency pairs directly, but there are also publicly traded trusts and funds that allow investors to buy and sell international currencies just like stocks.
In what states is a dollar worth the most? ›
Generally speaking, dollars go furthest in states in the Southeast and Midwest parts of the country. Go to places like Arkansas or South Dakota, and you'll see higher purchasing power.
What countries are dumping the U.S. dollar? ›
Notable examples include China, Russia, Brazil and the European Union, each of which has taken steps to reduce their reliance on the US dollar in international transactions and financial markets.
When was the U.S. dollar worth the least? ›
The dollar's index value reached its high point in 1985 and its low point in 2008.
