The fixed exchange rate system established at Bretton Woods failed due to speculative pressures on the U.S. dollar.

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The U.S. dollar was the only currency that could be converted into gold in the fixed exchange rate system established at Bretton Woods. As the currency that served as the reference point for all others, the dollar occupied a central place in the system. The system failed when its key currency, the U.S. dollar, faced speculative pressure.

The Fixed Exchange Rate System Established at Bretton Woods Failed