Originally Posted by Dollarmansteve

Can I also point out that those most directly affected by a weaker US dollar are the ones holding it. When the US runs current account deficits it means that there is a net outflow of currency - in simple terms, US dollars are used to buy the currecy needed in trade - and the exporting country holds the US currency. I believe that China has the largest foreign reserve of US cash on the planet - every tick that the US dollar goes down costs the Chinese central bank tens of millions of dollars in value.