Live and Historical USD/DKK Rates
This chart represents the value of the United States dollar (USD) against the value of the Danish krone (DKK) – that is how many Danish krones can purchase one United States dollar. USD is a major currency and DKK is not. USD/DKK does not form a major pair or a commodity pair.
The U.S. Dollar
USD is influenced by America’s major economic sectors, which include agriculture, energy, finance, and manufacturing. Success in these areas has helped to make USD strong. USD is a popular reserve currency-in fact, more USD is held outside of the US than within. USD is a floating currency and has been since the US led the way in the trend in the early ’70’s. Before this time, world currencies were pegged to the dollar. The Federal Reserve keeps a tight rein on the value of USD, adjusting lending interest rates to do so. Time will tell if the euro will replace USD as primary reserve currency-in 2007, Alan Greenspan held this as a completely feasible occurrence.
The Danish Krone
The current Danish krone was introduced in 1949 after being pegged to the German Reich-mark during war occupation. As one of the few countries in the European Union to retain its own currency, it is now pegged to the Euro via the EU’s exchange rate mechanism. The currency is also used in Greenland and the Faroe Islands. Though GDP shrunk in 2009, Denmark has a strong public debt/asset ratio funded by some of the highest taxes in the world. The main strength of the Danish economy lies in their people — 65% of their GDP is services. Denmark also has a strong industrial sector at 30% of the GDP. Agriculture rounds out the rest.
Because of Denmark’s close relationship with the EU, there is a strong correlation between this pair and EUR/USD. In fact, for the most part, there is little difference between the two trading pairs-one might as well trade EUR/USD instead of USD/DKK. There is little opportunity for carry trading, nor do commodity or agriculture prices have a strong influence. One of the biggest current issues for the krone is the possibility of transition to the euro. Any political movements towards that goal will have a slight influence, though the central bank works to keep the currency at its pegged value.