Dollar vs. Euro...........

[out_at_sea]

Why is the damn dollar keeps falling behind the Euro?

I usually travel 2 times a year to Europe .....just got back from there and the damn dollar was like 1.25 for an Euro..... one year ago the dollar was higher than Euro.

What is the impact on US economy for having a weak dollar?

Lets hear some opinions from smart economists and not only....

 

[OXANDRIN]

Many reasons for weak dollar

1. The US is at war (uncertainty is bad for currency)
2. US deficit is more than 3% of GDP (we wouldn't be able to get in the Eurozone)
3. Huge trade deficit (keep sending our money out then people sell it to convert it to their currnecy and the FX market gets flooded with dollars causing an excessive supply decreasing price)
4. Fed Funds Rate is at 1% only japan and swiss have lower rates and their currencies are weaker than ours
5. The assholes in DC are keeping the dollar weak to encourage exports increasing companies sales to international markets (this is contradictory to our so-called "strong dollar policy")
6. stock markets become an attractive investment from foriegn nations thus providing more money to the financial service industries in our country

basically..... we need to end the war, erase the budget deficit, reduce the trade defict (or slow it) increase the over night rate, and hope eurodollar trades become more favorable to US reinvestment

 

[OXANDRIN]

Andy Kreiger should run the treasury department

 

[anthrax]

The US$ will stay low against the euro at least until the next election

Bush needs a strong economy to be re-elected

 

[fistfullofsteel]

The US$ will stay low against the euro at least until the next election

Bush needs a strong economy to be re-elected

I remember my economics professor telling me if the unemployment rate is under 5% then usually President in office is re-elected.

 

[collegiateLifter]

Many reasons for weak dollar

1. The US is at war (uncertainty is bad for currency)
2. US deficit is more than 3% of GDP (we wouldn't be able to get in the Eurozone)
3. Huge trade deficit (keep sending our money out then people sell it to convert it to their currnecy and the FX market gets flooded with dollars causing an excessive supply decreasing price)
4. Fed Funds Rate is at 1% only japan and swiss have lower rates and their currencies are weaker than ours
5. The assholes in DC are keeping the dollar weak to encourage exports increasing companies sales to international markets (this is contradictory to our so-called "strong dollar policy")
6. stock markets become an attractive investment from foriegn nations thus providing more money to the financial service industries in our country

basically..... we need to end the war, erase the budget deficit, reduce the trade defict (or slow it) increase the over night rate, and hope eurodollar trades become more favorable to US reinvestment

Do you have any idea what you are talking about?
Lets start with any "uncertainty" about the future of the US relating to War. lol. The Dollar is still the world currency, and no one is afraid of the US going under any time soon.

The dollar is not weak, but on the contrary, being held too high according February 7th's issue of The Economist, for reasons including but not limmitted to those actions of those "assholes" in The Fed, China and Japan.

 

[The Wenis]

Do you have any idea what you are talking about?
Lets start with any "uncertainty" about the future of the US relating to War. lol. The Dollar is still the world currency, and no one is afraid of the US going under any time soon.
QUOTE]


not uncertainty about the outcome. uncertainty about cost of the war in $ and lives, uncertainty about consumers' reactions to it, uncertainty about oil and gas prices because of it....etc.

 

[the nature boy]

euro's taste better than dollars.


HEYYYYYYOOOOOOOOOOOOO!!!!

 

[bluepeter]

Do you have any idea what you are talking about?
Lets start with any "uncertainty" about the future of the US relating to War. lol. The Dollar is still the world currency, and no one is afraid of the US going under any time soon.

The dollar is not weak, but on the contrary, being held too high according February 7th's issue of The Economist, for reasons including but not limmitted to those actions of those "assholes" in The Fed, China and Japan.

I don't know dude, I thought he was about right on....

 

[the nature boy]

Do you have any idea what you are talking about?
Lets start with any "uncertainty" about the future of the US relating to War. lol. The Dollar is still the world currency, and no one is afraid of the US going under any time soon.

The dollar is not weak, but on the contrary, being held too high according February 7th's issue of The Economist, for reasons including but not limmitted to those actions of those "assholes" in The Fed, China and Japan.

can you post that link? the dollar is getting weaker due to increased deficit spending and increased national debt.