2007-10-29 15:01:34 · 3 answers · asked by Yussef D 2 in Social Science ➔ Economics
It is a matter of supply and demand. Although the supply of $US is fairly stable, the demand for $US has fallen and continues to fall.
Why has the demand for $US fallen? Interest rates in the US falling and interest rates o/s increasing.
2007-11-06 11:09:25 · answer #1 · answered by jemhasb 7 · 0⤊ 0⤋
Currently it takes 1.45 dollars to buy one Euro. The rate in June was 1.32. It was 1.18 as recently as November of 2005. A currency's value is determined by supply and demand like all other commodities. The Federal Reserve controls the supply through its monetary policy. The demand is affected by interest rates and economic growth.
2007-11-06 11:42:11 · answer #2 · answered by Razorback 3 · 0⤊ 0⤋
Because the US federal reserve has been printing too many dollars. The supply of US dollars doubles every 18 months. They do this to pay the bills, as America imports 800 billion $ worth of goods every year that it can't afford.
As the number of dollars available increases, the value of each one drops.
2007-11-02 01:09:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋