Compare Quotes To Get The Best USD Exchange Rates

If you are doing any sort of US Dollar (USD) Exchange Rate conversion it pays to compare providers to see who can give you the best US Dollar (USD) exchange rate. High street banks are the worst place to convert money as they generally have poor US Dollar (USD) exchange rates. To get the best rate for large US Dollar (USD) Exchange Rate currency transfers, smaller regular money transfers or cash travel money read our guide to the top providers.

Get The US Dollar (USD) Exchange Rates With These Currency Providers

Currency BrokerNumber of CurrenciesMin TransferForward ContractsPersonal TransfersBusiness CustomersSame DayCurrency OptionsYear FoundedAnnual TransfersAmount of CustomersGet A Quote
Key Currency42£1,00012 months✔️✔️✔️2015£2bn50,000+Visit Key Currency
OFX55+£25012 months✔️✔️✔️1998£2.4bn1,000,000Visit OFX
Global Reach30+£3,00024 months✔️✔️✔️✔️2001£6bn30,000+Visit Global Reach
TorFX40£10024 months✔️✔️✔️2004£7.5bn325,000Visit TorFX
Currencies Direct
40£10012 months✔️✔️✔️1996£7.5bn325,000Visit Currencies Direct

What is the best US Dollar (USD) Exchange Rate?

The current best US Dollar (USD) exchange rate versus other G10 currencies is the mid-market price which is:

Australian Dollar (AUD)1.467352
Canadian Dollar (CAD)1.289175
European Union Euro (EUR)0.9589
Japanese Yen (JPY)135.225
New Zealand Dollar (NZD)1.632011
Norwegian Krone (NOK)9.97568
United Kingdom Pound Sterling (GBP)0.8261051
Swedish Krona (SEK)10.33302
Swiss Franc (CHF)0.9590252

US Dollar (USD) Exchange Rate Explained

The US Dollar is the currency of the United States of America. Its FX abbreviation is USD.

Due to America’s unique status in 1945, the US Dollar was bequeathed a special position in global monetary system. It acted as the anchor currency in the Bretton Woods system. Once that system phased out in early 1970s, the US Dollar became the reserve currency of the world. And because the US economy is the largest economy in the world, its trade and monetary policies are amplified through the entire global financial system via the US Dollar.

Apart from a few special currencies (Euro and Pound Sterling), most FX pairs are quoted against one US Dollar. For example, USDJPY at 110 means it takes 110 Japanese Yen to exchange for one US Dollar.

Because most FX pairs are quoted against the US Dollar, it is the most actively traded currency in the world. The Bank of International Settlement survey shows that in 2019 $5.8 trillion US dollars are traded per day.

The US Dollar is highly sensitive to the US monetary policy. The institution in charge of the US monetary system is the US Federal Reserve. It supervises the nation’s banking and financial system and in times of crisis acts as the ‘Lender of the last resort’. Within the Fed, the 12-member Federal Open Market Committee (FOMC) sets the policy rate and determines the overall monetary direction. Any unexpected change in the policy rate causes volatile movements in the US Dollar.

What factors affect the US Dollar (USD) exchange rate?

The US Dollar is a huge currency. It is like a supertanker, which takes a lot of effort to change its direction.  Moreover,  the USD is held by many central banks as the reserve currency. According to a recent IMF survey, 59% percent of all reserves are in the US Dollars valued at about US$7 trillion.

This raises two points. First, the US Dollar is a reserve currency, meaning that it acts as a ‘safe haven’ asset in times of market turbulence. For example, in the early days of the pandemic (Mar 2020), the US Dollar soared in value as investors dumped risky assets and sought safety in the US Dollar (see below).

Second, when the value of USD overshoots, central banks around the world may act together to reverse this trend. One famous intervention is the Plaza Accord in 1985, whereby five major central banks acted to devalue the dollar. Thus traders should pay attention when the Dollar moves to extreme levels.

But multi-lateral interventions in the currency market are rare. These days, one of the most important factors in gauging the US Dollar is quantitative easing (QE). Broadly speaking, the larger the QE, the weaker the currency. This is because QE is a form of monetary easing, which floods the market with liquidity and dollars.

Did you know that 20 percent of all US Dollars were printed in 2020? In the past 18 months, the Fed printed about $4 trillion dollars (see below). No wonder the US Dollar is weak.

Source: US Fed

What else impacts the Dollar? On the day to day basis, GDP figures, inflation data, and unemployment rate are closely watched. Speeches by the Fed chair are scrutinised at real time – any hint of an impending change in the rate policy will cause an immediate move in the US Dollar.

The most important issue this year (2021) is whether the US Fed will taper and stop increasing the size of its balance sheet. Right now, the world is still recovering from the pandemic and this may cause the Fed to extend its accommodative policy for the moment.

Bottom Line – The US Dollar is a special currency. It is the benchmark currency in the world and a safe haven asset. In times of rising risk appetite, the value of the dollar typically fall as traders sell dollars and buy risky assets. This trend reverses during a crisis.

Getting the best US Dollar (USD) Exchange Rate FAQ

When you convert and transfer US Dollar (USD) with a currency broker your fixed exchange should be a maximum of 0.5% from the mid-market for currency transfers. To put this in perspective, banks traditionally charge 3-5% which means that if you are sending £100,000 worth of US Dollar (USD) you could save up to £4,500 with a currency broker versus the banks.

Request a quote to see how much you can save – you’ll find a better US Dollar (USD) exchange rate than by using your bank.

Where to find the best exchange rate for US Dollar (USD)?

Comparison tables and US Dollar (USD) exchange rate quote request forms will help you find the best US Dollar (USD) exchange rate. US Dollar (USD) exchange rate comparison tables highlight the key features of currency transfer providers whereas US Dollar (USD) exchange rate quote request forms will make currency brokers compete for your business by offering the best exchange rate.

A few tips on getting the best US Dollar (USD) exchange rate:

How do I know I am getting the best US Dollar (USD) exchange rate?

Only go with a currency broker that offer fixed and transparent exchange rates and clearly show fees. All fees and charges should be built into the exchange rate. Have a look around currency providers’ websites, and if you find that they don’t clearly show how much a currency transfer is going to cost you will need to ensure you get a fixed mark up rate in writing to ensure you get the best US Dollar (USD) exchange rate.

Should you convert US Dollar (USD) now or wait for the exchange rate to improve?

If you think the exchange rate is going to go in your favour have a chat with your currency broker. Most have been providing market timing advice to institutions and hedge funds for years and should be able to provide some guidenece on strategy. Or, if you are worried the rate will move against you it is possible to lock in the current rate for up to a year in advance with a currency forward.

How do I know what the US Dollar (USD) exchange rate commission is?

These are included in the exchange rate and are always fixed and transparent. Our exchange rates are always a fixed percentage from the live mid-market.

If you want to know how much the fees will be just ask and we’ll provide a clear breakdown. Read our guide on how to compare exchange rates, which also explains what the fees are and how to calculate them.

Will I really get the best US Dollar (USD) exchange rate?

Yes but you’ll have to put a bit of effort it. If you are already using your bank or another currency broker send us a recent transaction and we will send you back a breakdown of exactly how much they are charging you in hidden fees and how our approach to fixed and transparent exchange rates will result in you getting the best US Dollar (USD) exchange rate.

Why buy US Dollar (USD) through a currency broker?

  • Compare the cheapest bank beating currency exchange rates
  • Expert help and advice to reduce your risk and exposure
  • Dedicated account managers every step of the way
  • Convert funds online and platform access 24/7
  • Same day and forward currency exchange contracts
  • Zero service charge, commission or transfer fees
  • Transfer money direct to single or multiple beneficiary accounts
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