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Old 08-20-2007, 12:32 AM   #1
Myst
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With the US govt cutting interest rates.. what will that do the the dollar?

Will it rise or fall?
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Old 08-20-2007, 01:08 AM   #2
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rise because people will invest in america... its all theoretical ofcorse
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Old 08-20-2007, 01:11 AM   #3
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rise I hope...it should shouldnt it?
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Old 08-20-2007, 01:12 AM   #4
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Old 08-20-2007, 01:26 AM   #5
Myst
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see I assumed that since interest rates go higher, countries will invest in america since they are getting more return.

so if interest rates get cut.. dollar should drop right?
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Old 08-20-2007, 01:46 AM   #6
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Originally Posted by Myst View Post
see I assumed that since interest rates go higher, countries will invest in america since they are getting more return.

so if interest rates get cut.. dollar should drop right?
yes, you are right. now, when almost all biggest countries in the world are raising interest rates, there are possibilities to invest in safer instruments with similar or higher yields then in USA.
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Old 08-20-2007, 06:40 AM   #7
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rise because people will invest in america... its all theoretical ofcorse
stay in school
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Old 08-20-2007, 06:43 AM   #8
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I shall find out
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