Quote:
Originally posted by Tex Willer
yes but it has never lost 30% of its value in so short time period, that's what's disturbing
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I don't think that's true, Tex. Which currencies are you comparing the dollar to? If you use the Euro/Euro basket currencies, it's dropped faster before.
US vs. European currencies. February, 1985 to May, 1986. Dropped 30% in 15 months. Beat that. The dollar lost almost 50% from 1985 to 1987 relative to european currencies.
The US Dollar Index was at it's highest point since 1995 in February, 2002 (132.245). It's at 123 now. That's only a 7% drop. The US Broad dollar index shows less than a 10% drop from the high of Feb, 2002. In fact, the drop in the dollar the past year and a half pretty much matches the rise in the year and a half before that. The dollar is still about 20% or so above where it was ten years ago. As I said, we're just back to the 1999 exchange rates. Asking why the dollar is dropping now is to also ask the question why did it rise before?