Wednesday, October 22, 2008

The Greenback Hits At Two-Year High

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The U.S. dollar index (major currencies) hit a two-year high today, reaching the highest level since October 16, 2006 (see chart above).

6 Comments:

At 10/23/2008 7:18 AM, Blogger Thomas Blair said...

Typo: since October 16, 2006.

Why is the dollar gaining strength right now?

 
At 10/23/2008 9:44 AM, Anonymous Kevin said...

Safe haven.

Why is this good? Seems it will make our exports more costly.

 
At 10/23/2008 6:27 PM, Anonymous Anonymous said...

Kevin, It's good because it means our imports are cheaper. And since we are net importers...

 
At 10/23/2008 6:29 PM, Anonymous Anonymous said...

The dollar didn't gain strength, it simply isn't losing value as fast as other currencies.

 
At 10/24/2008 11:07 AM, Anonymous Anonymous said...

There is no valid reason to explain rising of dollar. It's just fuckin speculation again.
This only create inestability and lost trust at the free currency flotation system.

 
At 10/25/2008 1:40 PM, Blogger Arman said...

As I have said before, this is a cash contraction caused by the lowering of interest rates. The value of money is strictly dependent on its scarcity. When there is less dollars circulating then each one is valued more.

 

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