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    Hey, im kinda bored at the moment, and i thought it would be interesting to hear your opinions on the weakness of the US dollar.

    Some people believe that it is because USA wants to balance the trade deficit...etc others think it is an aftershock of 9/11, while other people think about the uncertainties caused by the forthcoming elections. The fact is that noone really knows why.
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    I think it is a combination of trying to balance the trade deficets and by promoting/protecting american jobs for the election time
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    (Original post by TheWolf)
    Hey, im kinda bored at the moment, and i thought it would be interesting to hear your opinions on the weakness of the US dollar.

    Some people believe that it is because USA wants to balance the trade deficit...etc others think it is an aftershock of 9/11, while other people think about the uncertainties caused by the forthcoming elections. The fact is that noone really knows why.
    Weak currency = low exchange rate due to lack of demand for exports or greater demand for imports. The low exchange rate itseld will soon balance out the effect, raising demand for exports and deterring imports.
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    (Original post by TheWolf)
    Hey, im kinda bored at the moment, and i thought it would be interesting to hear your opinions on the weakness of the US dollar.

    Some people believe that it is because USA wants to balance the trade deficit...etc others think it is an aftershock of 9/11, while other people think about the uncertainties caused by the forthcoming elections. The fact is that noone really knows why.

    USA currently has extremely low interest rates which makes it a very bad place to have your savings. Therefore low interest rates in the US makes the dollar less attractive for foreign investors and so this leads to less demand for the US dollar which makes the dollar very weak in value.
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    Might interest you lot:

    http://news.bbc.co.uk/1/hi/business/3303549.stm
 
 
 
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