Why is the United States dollar falling year over year?

Answer 1

Currency markets behave as commodity markets..supply and demand. Economic conditions are merely one factor in determining price. Please remember in the late nineties Japans economy was faltering and the yen dropped as the dollar was a safe haven (political stability, booming stock market and solid growth). The massive accumulation of the greenback caused an valuation "bubble" which is now unwinding.

The euro now provides an alternative to the dollar, that has far less downside as the European Economic Community is more politically stable and not involved in the uncertainty of war.

Answer 2

the real answer is that the u.s. has a massive trade debt with other foreign nations. in other words, we import much more than we export. the u.s. exports very little to foreign govt's besides defense weaponry and computer products. most of our debt is with china. read the back of 90% of the products in stores and you'll see why.
importing more than you export creates a deficit (the one they always talk about on the news) and this in turn weakens the dollar on the foreign market. a deficit means you don't have as much money to backup that dollar as other countries may have. so other countries don't want to trade with us because the it takes so many more dollars to buy products in their own country. great britain has a fairly strong economy which is why it takes almost 2 u.s. dollars to get 1 british pound.
also, what the news and gov't never mention is the cost of the war in iraq. any time you hear anything on the news about the budget, the deficit, or the economy those numbers never factor in the cost of the war in iraq which is currently around $1 billion a week. excluding that information makes the economy sound good to the people at home but it gives a false sense of security. and other nations are not so easily fooled. they know the real status of the economy when war costs are factored in. and that is why those foreign nations have such a strong trade with the american dollar.

Answer 3

Because the stock market almost crashed in '01, and since then, American companies have been outsourcing labor to other countries because they don't have to pay as much.

Answer 4

what goes up must come down. It is actually good, because it needed to stabalize. It is going to stop going down. Throughout history thats how its been.

Answer 5

Because oil is going high and people go fried.

Answer 6

SiNCE WHEN?????