What happend to the USD ? Why USD drop againt world major currencies especially the sterling and the Baht?

Question

Do u think it would rise back in the future

Answer 1

There are many factors attributing to the currency. But generally economies outside US are doing much better. For example, the GDPs in Europe in average is forecasted to be higher than US.

Some asian countries like Thailand are the same as some of these econmies are on a tear. As they export more, their currency increase in value.

The USD is about where it is about 14 years ago and about 26years low to the sterling. US has huge deficit now so it is unlikely in the near term to have any significant upside.

There will be some kneejerk effect to keep the USD at this level as some of the exporting nation needs to keep their goods competitive.

Answer 2

This has a lot to do with yield advantage. Current yield differential between currencies and expectations of future rates. With the recent data out of the US, which is not so hot, so rate rise expectations has been tone down quite a bit. I believe the usd will recover in the future since a weak currency tends to help the economy one way or another.

Answer 3

First, the Baht is not a major world currency.

Second, it's due in large part to large debt loads being taken on by the US. The debt is being used predominantly to finance the war in Iraq and to pay for cheaper imports from other states.

Yes, it will rise in the future. All currency markets are cyclical to some extent and this is simply a down cycle for the dollar. Eventually China will actually have to allow their currency to float and when this happens the US trade deficit with China will even (and our debt will decrease thus raising our currency value).

Answer 4

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Answer 5

The dollar is inflating. Inflation is caused by one thing - the government 'printing' too much money (Milton Friedman received the Nobel Prize for proving this fact). An inflated dollar is worth less, therefore foreign currencies will become worth more dollars (if they are not inflating too).

Answer 6

the jap economic device has been in recession on condition that 1990, it truly is in straightforward words now starting up to reveal some existence, The expenditures of interest for loans are 0.5% (a million/2 0f a p.c..) large investors, borrow funds at 0.5% in japan and purchase funds to make investments elsewhere, that places stress down on the yen, and stress up on USD compared to yen....you borrow in yen, convert to USD (promote yen) to purchase investments in US.