Will the value of the $ bounce back?

[Abaddon]

Currently the dollar is so weak 1 GBP = 2.0825 USD

http://www.advfn.com/p.php?pid=forexqkchart&curcode1=GBP&curcode2=USD

Do you think there will be a recovery? Ever? within 6 months?

 

[Ansar]

I certainly hope so.

 

[Ramius75]

One of the way of making the USD stronger of coz is to start a war. To destabilize other countries economy.... if let to present course. The USD will continue to weaken unless the administration cut down the spending and boost confident in the USA economy...

 

[Theige]

One of the way of making the USD stronger of coz is to start a war. To destabilize other countries economy.... if let to present course. The USD will continue to weaken unless the administration cut down the spending and boost confident in the USA economy...

I agree spending on the wars in Iraq and Afghanistan has been unfathomably costly. Hopefully our involvement there will end sooner rather than later.

But, the economy of the USA is doing well, thanks in part to our weak dollar

Weaker dollar = greater demand for products produced within the USA, both by US consumers as well as foreign consumers.

 

[Abaddon]

true ture, many a english gent is travelling over to you to buy cheap goods

 

[Homie]

I certainly hope so.

Why?
Do you know the significance of your currency being high or low?
Alot of people think that the more their currency is worth, the better is the state of their economy, which is not true.

Having a stable currency is the most important, one which does not fluctuate much in value.

For one, when your currency is low, your exports will be greater, because it will be cheaper to buy your goods. This brings revenue into your country.

Edit: Oops, crosspost with Chronic. I think this may be my first crosspost.

 

[emzie]

It'll bounce back, though not to the same global dominance it once held, lest the EU breaks up.

It's rather unfortunate that all my money is in USD, and all my purchasing will soon be in CAD.

 

[Abaddon]

Cad?


.

 

[MjM]

Canadian AMerican dollar.

 

[skadistic]

It'll bounce back, though not to the same global dominance it once held, lest the EU breaks up.

It's rather unfortunate that all my money is in USD, and all my purchasing will soon be in CAD.

But at least in Canada at Wal*mart you can pay for your books and mags. in Canadian money but only pay the America price.

 

[MobBoss]

Sure it will. It always has before.

 

[mrt144]

Sure it will. It always has before.

past history is not indicative of future results.

anyway, bernake screwed the pooch on this one. he shouldnt be a buddy to the stock market and investment firms. lowering the federal funds rate makes the dollar less attractive to foreign investors and they will shift capital out of the US. the idea that our export rate could somehow bridge the gap of investment lost has yet to be seen.

something to watch for though is people going after the dollar at a point when they believe it is at bottom. I dont feel we have reached that point.

 

[azzaman333]

It'll bounce back, but it probably wont reach past levels.

 

[emzie]

But at least in Canada at Wal*mart you can pay for your books and mags. in Canadian money but only pay the America price.

Canadian Wal Marts aren't real. You walk in and there's a greater who's happy to have a job in a clean store. It's disconcerting.

 

[Xenocrates]

What are the factors that affect the value of a currency? Are there more?

• Predicted future change. If enough people think it will go up, it will.
  
• Predicted stock market/property change. Assets traded in $ will protect the $.
  
• a return to exporting goods so foreigners want to hold $ to buy from the USA.
  
• Predicted value of other currencies/assets traded in other units.
  
• Interest rates

ATM the Asian markets are booming and the US isn't. I don't know about now but a few weeks ago we were up 10% a day (the cap) in Shanghai. Of course the $ will slump and the silly interest rates are going to amplify the pressure.

What would it take to increase the $?

+ asset depreciation to allow for future growth (property/stock)
+ Interest rate increase
+ economic woe abroad
+ 'big government' to plan a stable balanced economy
+ decrease supply of $ (no more counterfeiting by the CIA )

 

[T.A JONES]

No. It will change form into the Amerowhen its equal in the eyes of A Canadian again

 

[Theige]

past history is not indicative of future results.

anyway, bernake screwed the pooch on this one. he shouldnt be a buddy to the stock market and investment firms. lowering the federal funds rate makes the dollar less attractive to foreign investors and they will shift capital out of the US. the idea that our export rate could somehow bridge the gap of investment lost has yet to be seen.

something to watch for though is people going after the dollar at a point when they believe it is at bottom. I dont feel we have reached that point.

Well, the dollar specifically becomes less attractive to buy or hold, but American companies become more attractive to invest in and also acquire through mergers and acquisitions, bringing investment dollars into the US.

 

[chinesefireball]

Why?
Do you know the significance of your currency being high or low?
Alot of people think that the more their currency is worth, the better is the state of their economy, which is not true.

Having a stable currency is the most important, one which does not fluctuate much in value.

For one, when your currency is low, your exports will be greater, because it will be cheaper to buy your goods. This brings revenue into your country.

Edit: Oops, crosspost with Chronic. I think this may be my first crosspost.

Exactly - I'm happy the US$ is low at the moment - I can now import things into Australia and save even more money (i.e. recenctly I bought a laptop from the US, it cost me roughly $AU2400 after shipping and tax - to buy it here would cost somewhere around $AU3200 (and it hasn't been released yet))

 

[T.A JONES]

Why?
Do you know the significance of your currency being high or low?
Alot of people think that the more their currency is worth, the better is the state of their economy, which is not true.

Having a stable currency is the most important, one which does not fluctuate much in value.

For one, when your currency is low, your exports will be greater, because it will be cheaper to buy your goods. This brings revenue into your country.

Edit: Oops, crosspost with Chronic. I think this may be my first crosspost.

Yes but look the other way and see some benifts of having a high valued currency at you disposal. SOme offsetting advantages is relief to Gov infrastructure costs and boosts in the country's investment in new business ether developed and operated as private-sector or government enterprises

IN Canada think about why the doller is up in the fist place, its mining oil and minerals THen sellin at record high prices. If are doller lets us purchase the amzing mercedes of all mining gear The Bucket-wheel Excavator something are companys normally could not afford, we stand to better exploit the higher price of minerals as are output has risen thanks to increases in purchasing power.

Now are massive earnings mean we can dump more into exploration of new propeties and put more people to work making fat checks. Essentially this is whats going on in Alberta, its now spreading to Saskatchewan

 

[mrt144]

Well, the dollar specifically becomes less attractive to buy or hold, but American companies become more attractive to invest in and also acquire through mergers and acquisitions, bringing investment dollars into the US.

provided there is enough credit to finance m&a...but there isnt...

and american companies dont necessarily become more attractive especially if imports are part of their strategy.