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.
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.
The U.S. dollar index (major currencies) hit a two-year high today, reaching the highest level since October 16, 2006 (see chart above).
Typo: since October 16, 2006.
ReplyDeleteWhy is the dollar gaining strength right now?
Safe haven.
ReplyDeleteWhy is this good? Seems it will make our exports more costly.
Kevin, It's good because it means our imports are cheaper. And since we are net importers...
ReplyDeleteThe dollar didn't gain strength, it simply isn't losing value as fast as other currencies.
ReplyDeleteThere is no valid reason to explain rising of dollar. It's just fuckin speculation again.
ReplyDeleteThis only create inestability and lost trust at the free currency flotation system.
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.
ReplyDelete