It is sometimes said that the dollar sign's origin is a narrow
"U" superimposed over a wide "S", "U.S." being short for "United
States." This is wrong, and the correct explanation also tells why
the $ sign is used both for dollars and for pesos in various
countries. The explanation is not widely known, maybe because not
many people would think to look for it in a book called A History
of Mathematical Notations, Volume II: Notations Mainly in Higher
Mathematics by Florian Cajori (published in 1929 and reprinted in
1952, by Open Court Press). Cajori acknowledges the "U.S." theory
and a number of others, but, after examining many 18th-century
manuscripts, finds that there is simply no evidence to support those theories.