Is the dollar weak because the democrats are in power?

Answer 1

not at all it is because of the war, the national debt and the prices of oil

Answer 2

The strength of a currency is determined by the demand of investors (whether individuals or other governments) to hold that currency. When there is high demand for the dollar, people holding dollars can get a higher price for them (relative to other currencies) and thus drive the price up – so the currency gets strong. OK that is simple enough – but what makes people want to hold a currency?
There are two basic reasons:
1)If they want to hold assets in that currency – ie if they want to buy stuff that you need dollars for – like US stocks, bonds, land, or infrastructure. If investors think that those assets are a good investment (ie they think US stock prices will go up) they will want to acquire dollars so they can buy those assets and enjoy good returns.
2)If the real interest rate (nominal interest rate minus inflation) is high, they can get a good return by basically putting the money in a US bank

The cause of the current weakness in the dollar is because the general assessment in the investment community is that the US economy is headed for a recession – driven largely by the bursting housing bubble. This is expected to drag the entire economy down. As the economy slows down (or even contracts) the various US assets are likely to lose value – stock market will drop, etc. Investors don’t want to own those assets, therefore they don’t really want to own the dollars that are needed to purchase those assets, therefore there is less demand for the dollar… price falls… and you read about the dollar being weak.

Who is in power is not that much of a factor in this particular case – neither Democrats nor Republicans are seen as being more likely to be able to stop or soften the economic slowdown driven by the collapsing housing market.

Answer 3

The Democrats aren't in power. Yet. The dollar has been dropping for about 2 years now, while the GOP ran things. Bush's huge debt (remember that surplus Clinton left Bush? Long gone with tax breaks for the rich and this damn war.).

Answer 4

Where have you been? The republicans have had the majority votes. I do not believe that the Democrats have control until January. Furthermore, the FACT is that it takes 4 years for the mess that was created by one party to begin to be repaired. Now, when Clinton was in office, we had a balanced budget, our foreign affairs were doing fairly well, and our citizens were being taken care of a lot better than they are now. Instead of assuming study and get the facts rather than making nasty comments.

Answer 5

I think the dollar is weak because of people like the ones above.

Answer 6

The weakening dollar was due to political instability when the Democrats will occupy their positions this January. There is a perceived political turmoil due to conflicts of the parties.

Answer 7

No... it's because of
1)High debt
2)Sluggish economy
3)Printing too much money
4)The US is not well liked right now, which might cause investors in other countries to put their money into the Euro
5)Low interest rates (Not a good return for investors)
6)Also kept artificially low to benefit the anemic manufacturing industry. Our products can remain competitive around the world.

This might not be all of the reasons, but I believe these are the main causes of it.

Answer 8

The dollar is weak because of the 5 trillion dollar debt Bush ran up!

Answer 9

No, it is weak because the Democrats AREN'T in power yet!

Answer 10

The dollar is weak because all the wealth of the US is pumped to Iraq, to make the shareholders of a few US conglomerates richer

Answer 11

Is the question valid because this isn't true? The Democrats won't be in power 'til Jan.1.
Get a cup of coffee.