How is the US Dollar getting stronger?
 

Can somebody smarter than me please explain?

Maybe its not, the others are just finally starting to weaken as bad news in other countries hits and people realize that with free trade the US dollar weak is a disadvantage to them.

That and I think because the demand for oil is lessening. Oil prices go down which is good for the economy so the USD gets a bit stronger.

You idiot....... the US dollar is weakening seriously against a number of currencies such as the chinese Yuan. Its only strengthening against the UK pound and the Euro because theyre more fucked up than the american economy right now and so their currencies are weakening.

Who care,as long it goes up i am happy.

Simply the Pound, Euro and Dollar are all racing to the bottom. At the moment bad economic news in Europe has pushed the Pound and Euro down more than the bad economic news in America. Also, there is some manipulation going on with central banks to prop the dollar up. Don't get too excited though. It's a temporary thing. The dollar is fucked. :2 cents:

You call him an idiot? :1orglaugh
Fucking moron.

Saying the Euro and UK economies are more fucked up than the US ones is super fucking stupid. Are we having debates on 700 billion fucking dollar rescue plans? No!

Are we exchanging dollars 1:1.37? YES!

Freak.

I agree with the fact that our economy IS indeed not doing it's best right now but your statement is just plain fucking stupid.



Note to self: use less "fucking"

less trading make $ stronger?

i don't care but i am happy to get more euros from my atm nowadays

You have part of the answer...

Also, with less or no credit available ( the banks one ...), less new dollars printed...So the value is less diluted...

Just think of a company...100 shares each worth $100.00 each ( 10 000.00 total value ) ...
Then the company decides to bring in a new partner at a cost of $5000.00, payable in new shares ...
Company must emit another 100 shares, bringing the value down to $50.00 per share....

Dilution ....

Not 700 billion dollar rescue plans... Just 420 billion...
http://www.bloomberg.com/apps/news?p...efer=worldwide

Everyone else's currency is getting weaker.
WG

While there may be some truth to what you are saying that is not what is happening now. The central banks are injecting unprecedented amounts of liquidity into the markets now which will bite us all in the ass in the form of inflation and/or higher taxes.

Worth reading...
http://www.financialsense.com/Market...2008/1001.html

The USD is app. 25% undervalued compared to a basket of world currencies - correcting for relative size. The USD is strengthening because the FED more actively tries to stimulate the economy, whereas the European central bank exclusively is focusing on inflation. This indicates that US will be the safest medium term investment bet as recovery will go faster. This is leading investors to buy USD, selling EUR, pushing up the all mighty dollar.

FYI: The 700 bill. rescue plan “only” adds 7% to the current US deficit. The US has much bigger probs. ahead..

Agreed. :2 cents:

The Federal Reserve has a dual mandate.

1) "Protect" the economy.
2) "Protect" the dollar (e.g. keep inflation down).

The European Central Bank has only 1 mandate.

1) Protect the Euro (e.g. keep inflation down).

Because of Germany's history with hyperinflation and the political aftermath of it (e.g. Hitler) they insisted that protecting the currency be the sole mandate of the ECB. Only then would they agree to use the Euro as their currency.

France wants the other EU countries to make a 300 billion euro (= 420 billion USD) rescue package for the European financial sector... the big european socialist welfare states have been hurting for years, because of their fucking everyone with insane rules, high taxes, huge deficits and now the time is getting closer, when the price will have to be paid.

Now of course the french were quick to say that the 300 billion is only a rumor :1orglaugh so lets just keep pretending that europe is not bleeding right now... :disgust

All the big FIAT currencies are backed by each other, so it will be a race to the bottom. If the USD is fucked, then so is the Euro :2 cents:

if thats true US currencies plan is right on track
we need a stronger Yuan to compete in the world, plus have them buy more US made shit
euro got too strong for US, we needed a way to crash it.
Strong dollar is very bullish for us economy and stock markets,
strong dollar will hurt US exporters, but that will get made up by a lot in other areas.

lets hope this lasts.

I don't disagree. It will be interesting to watch how this all unfolds. Interesting time to be alive :2 cents:

Interesting. :)

Better keep an eye on your "Regional Billing" transactions.

I have noticed that the "Additional Realized Revenue" for the Euro has dropped over 30%.

Simple Supply and Demand.

http://en.wikipedia.org/wiki/Japanes...t_price_bubble

"As Japanese products became less competitive overseas, the low consumption rate began to bear on the economy, causing a deflationary spiral."

Look at the trillions WIPED out of our market!!! That means everyone has a LOT LESS $ TO SPEND so those of us who WANT $ are going to have to do MORE for it.

The 700 billion $ bailout is partly GREED because we know we can print that $ and inflate away gains made by people holding USD.

Bottom line is I don't know many people making MORE $ so therefore demand for STUFF is going to be less, driving down the prices for domestic goods and services, but countries that aren't closely tied to our economy (?) we could see prices of that go up.

The american stock market have lost least percentages.

Euro Falls to 13-Month Low Versus Dollar; ECB Debated Rate Cut
 

check this video that explains all:

http://video.google.com/videoplay?do...32603609670233

Yup.

We're awful close to a worldwide recession. Many countries have the same problems as the US. Insolvent banks, burst housing bubbles (down 12% in UK in last year), credit crunches with central banks flooding economies with liquidity, deflated assets and the need for rescues.

There is a recognition that even though the US has a lot of problems that it is further down the road in addressing them than many other countries. The US is close to passing the "bailout bill" while similar legislation is just now being brought up in other countries. Many US congresspersons and senators said they have plans to work on addressing the problems with the credit derivatives, housing and undoing some of the deregulation next session. many other countries that deregulated their mortgage industries haven't gotten that far yet.

^^^ WORD!

^^^ not so sure about that, I excpect from the end of the year or the begninning of the netx one the USD to get and remain really strong, right now it's way too volatile and nobody can predict which way it'll sway

I expect the Dollar will probably continue to trend up the rest of this year and maybe into next year. Long term though I think the Dollar is done for.