Why is the British Pound and the Euro so strong compared to the US Dollar and the Yen?

Question

For every 2 dollars you get 1 British Pound.
For every 1 Pound, you get 200 Japanese Yen.
What are the driving forces that make a currency, like the British Pound, so strong compared to other currencies?

Answer 1

this can be attributed to the large trade deficit US is experiencing. Moreover, the massive spending on the war in Iraq is putting a toll on the finances of the country. This, in turn, makes the US$ less in-demand relative to other currencies. US is known as the heaviest debter in the world. As such, the demand for other currencies increase, while depreciating the US$.

Answer 2

the actual exchange rate doesn't mean it is strong. does 200 yen buy the same thing in japan that 1 pound does in the UK?

does a pound buy what 2 dollars does here in the USA?

I can buy 22 pints of beer at the market for $10.99 here in the USA.

Answer 3

The dollar isn't worth anything in reality. Look up "petro-dollar". If oil was sold in Euros and not dollars, the USA economy would collapse. Saddam wanted to sell his oil in Euros. That was the real reason for invading Iraq, to keep barrels of oil with dollar signs on them. The USA has not got any real money at all. In debt up to thier eyeballs. It's only because of oil trading in dollars that keeps the lights on in the states.

Answer 4

The problem is believe it or not , As Americans we do not support our country. Most of the people buy stuff made in other country's, not America . If all Americans would buy American made stuff the dollar would be the strongest in the world. Buy American when you can !