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The word "Dollar" is derived from the 16th century Low German "Daler", which was derived from the German "Taler" or "Thaler" which is short for the "Joachimsthaler" coin made from the metal mined in "Joachimsthal" in the Czech Republic.
It's actually a pretty interesting origin of the word, here's a snippet that answers your question,

"The history of the dollar is a story involving many countries in different continents. The word dollar is much older than the American unit of currency. It is an Anglicised form of "thaler", (pronounced taler, with a long "a"), the name given to coins first minted in 1519 from locally mined silver in Joachimsthal in Bohemia."

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8y ago

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