Greenback, or US dollar, was first created to finance the American civil war and were called as such because their backs were printed in green. In the modern world, where the US dollar trades as a safe-haven currency, there were days in the mid-1800s when Continental Congress did not have taxing authority and the “greenback” was a negative term because they did not have secure financial backing authority and banks were reluctant to give customers the full value of the dollar. But now, the US dollar is considered the world’s reserve currency.
The reserve status is based largely on the size and strength of the U.S. economy and the dominance of the US financial markets. Thus, when the US performs well, the US dollar appreciates. And during the time of financial crisis too, the world rush to buy dollar as the US would be least expected to default. The outlook on the US dollar index over the short and medium-term remains bullish….