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Dollar V British Pound?
When is it forcast for the Dollar regain some strength against the British pound? Is the Dollar always going to remain weak? What is keeping it weak? Why is the pound so strong? Will it always be so strong?
I find this confusing? Also are there an websites that offer pound V Dollar forcasts?

2007-03-13 16:46:52 · 1 answers · asked by Truth Master 1 in Social Science Economics

1 answers

The strength and weakness of currencies has to do with the trade balance of the country. Right now, we import far more than we export. Thus, other countries demand for dollars is low. When demand for our currency is low, the value (exchange rate) falls for it. The dollar will not always remain weak, but the only way for it to strengthen will be for the United States to start importing less or exporting more and bringing the trade deficit into check. This will cause demand for the dollar to rise, and thus the dollar will begin strengthening against other currencies. The pound is strong for the opposite reason. Its trade balance is not nearly as far off as the United States. Thus, demand for it is still strong. It could weaken, if its trade balance were to get out of whack. This is unable to be foreseen to quickly.

I don't know of any websites, but you might try http://www.forex.com. That is a foreign exchange website, that will likely be your best bet.

2007-03-14 03:19:44 · answer #1 · answered by theeconomicsguy 5 · 0 0

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