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The value of the dollar is typically determined by a combination of factors, including supply and demand in foreign exchange markets, interest rates set by the Federal Reserve, inflation rates, and overall economic performance. It can be expressed through various indices, such as the U.S. Dollar Index (DXY), which measures the dollar's value against a basket of major currencies. Additionally, purchasing power parity (PPP) can provide a long-term perspective on the dollar's value relative to goods and services.

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