What's up with this weak US dollar?

Mudcat · 09-22-2005, 11:04 AM

First thing every morning I check the conversion rate, and all my off-shore funds have become less valuable - and I haven't even done anything yet.

No sir, I don't like it.

I'd appreciate if someone could fix that up in the next couple hours or so.

Thanks.

Ganchrow · 09-22-2005, 11:07 AM

Yeah and gold at 18 year highs. Say hello to our old friend Inflation.

LGBoots · 09-22-2005, 11:12 AM

Yeah it's a right pain

Looking on the slightly brighter side the $ has actually got a bit stronger
over the last week by 3cents (Against the UK pound anyway)

But over the last 6 weeks it has gone from $1.72 out to a low of $1.84.

Last time I looked this morning it was trading at $1.80.

Mudcat · 09-22-2005, 11:28 AM

I'm just comparing it to Canadian dollars and it has been going down, down, down.

jjgold · 09-22-2005, 12:11 PM

We are getting deeper and deeper into inflation

We need interest rates to drop

Pedro · 09-22-2005, 01:25 PM

Quote:

Originally Posted by jjgold

We are getting deeper and deeper into inflation

We need interest rates to drop

It's not because of the interest rates.

There are lot of factors:
- Hurricane
- US's energy reliance along with high energy costs
- Bush's little pet-project war not going so well.
- etc.

You can't drop the interest rates everytime you want to slow inflation. At some point you have to bite the bullet and try to fix the economy some other way.

Pedro

Ganchrow · 09-22-2005, 01:33 PM

Quote:

Originally Posted by jjgold

We are getting deeper and deeper into inflation

We need interest rates to drop

Lower interest rates tend to lead to higher inflation, higher interest rates tend to lead to lower inflation.

Ganchrow · 09-22-2005, 01:34 PM

Quote:

Originally Posted by Pedro

You can't drop the interest rates everytime you want to slow inflation.

Largely because that would be counterproductive.