do you think that by the end of the year dollar is going to fall against the euro and why,?

Answer 1

The euro is gaining momentum right now. Europe as a whole is richer than the U.S for sure..and will most likely continue to become richer....so yes, I have to say that it (U.S dollar) will most likely fall against the euro.

Answer 2

The other posters are correct in their assumptions. What has changed fundamentally about the U.S. financial system that would not cause it to fall against the Euro? We are running huge budget, trade and current account deficits, our debt is $53 trillion (not the $8 trillion current debt normally quoted) and we've got a deflating housing bubble.

I think the year will end with the dollar trading at $1.50:1 against the Euro. Since 2001, the US Dollar Index has fallen from 120 to 84 and we're still running record breaking trade deficits. Add to that that the other major central banks have been raising rates while the fed has left rates unchanged since Aug. 2006 and that's going to put additional pressure on the dollar as other currencies that are more stable are producing better yields. For example, in Dec or Jan., the BoE raised their rates to 5.25%, the same as U.S. rates. Why would anyone invest in dollars or dollar denominated assets when the rates from the Bank of England are equal to the U.S.? True, countries have to hold dollar reserves to buy crude oil, but with OPEC looking to switch to Euro denominated oil sales, any such move would be disasterous for the dollar.

My opinion, Yes, the dollar will end the year lower against the Euro.

Answer 3

The combined Budget deficit, trading deficit and high debt load is sinking the US dollar.
It will sink against all money that is not linked to the US Dollar
Letting the US dollar depreciate is the only way to conteract the balance of trade deficit, it makes foreign goods more expensive for americans and american goods cheaper for foreigners.

Answer 4

yes--its falling down--and will continue..