2006-07-26 06:32:32 · 5 answers · asked by Dr Dee 1 in Business & Finance ➔ Investing
Ignore nominal exchange rates, they are meaningless for judging relative valuation, because they are not corrected for inflation differentials between countries. Use real rates instead:
http://www.federalreserve.gov/releases/H10/Summary/indexbc_m.txt
Right now, the real broad dollar index is at 98. The average value of real broad dollar index since 1973 is, incidentally, 97.9. So in real terms, the dollar is not weak at all, it's valued right at the long-term average. The weakest the dollar has been in recent history was in October 1978, when the broad index was 83.3. The strongest dollar was observed in March 1985, when the broad index was 127.8.
2006-07-26 06:49:01 · answer #1 · answered by NC 7 · 1⤊ 1⤋
as long as there are countless perfectly forged 100 dollar bills floating around the world. Just try forging an English banknote compared to a 100 dollar bill
2006-07-26 06:37:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
it will be weak for awhile because the United States dept is so high that is why the dollar is weak
2006-07-26 06:35:38 · answer #3 · answered by Bear 2 · 0⤊ 0⤋
Friday weak.
2006-07-26 06:33:58 · answer #4 · answered by Harriet 5 · 0⤊ 0⤋
until Bush stops being a fool
2006-07-26 06:34:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋