What is happening to the Dollar?

Hey where is the dollar heading...do you think depreciation is on the cards for a long time.

Is it true that Kuwait dinar has been 'plugged' off from the Dollar, as they dont find it economically viable...what repercussions will this have?

How will this affect investors like us..do reply!

I keep asking myself that lately, hopefully everything will get back to normal.

the value of dollar is decreasing..maybe they are trying to reach out those developing countries.

I am paying 30% more to my outsources employees comparing to 1.5 years ago :( Realy bad......

I disagree, but it's your life. Do what you want….each of us has the right to go about how we feel.

i got an if...then...statement...
if... dollar are depreciating...then...good luck on other currency..

Q. “Hey where is the dollar heading...”
A. The exchange rate that would equalize prices in America and the euro area—the purchasing-power parity, or PPP—is $1.16, according to the OECD. Yet a euro buys as much as $1.55. With such a discrepancy, a European visitor cannot help but feel flush. On arriving in America, his spending power is instantly boosted by a third.

Measured against the currencies of America's trading partners, the dollar has fallen by a quarter from its peak in 2002. Some economists have long argued that such a big drop was necessary. By curbing imports and boosting exports, a cheaper dollar helps shrink America's current-account deficit and wean the economy off its reliance on consumer spending.

The conviction that the next move in American interest rates is up has helped stabilize the greenback, as have comments by Ben Bernanke, the Federal Reserve chairman, that he is mindful of the inflation threat posed by a weak currency. And as French and German holiday makers are discovering, the dollar is cheap against a PPP benchmark.

Q. “do you think depreciation is on the cards for a long time.”
A. No, but what do you consider as a long time?

Q. Is it true that Kuwait dinar has been 'plugged' off from the Dollar, as they don’t find it economically viable...what repercussions will this have?
A. The official position of the Gulf Co-operation Council (GCC) that the fixed peg to the US dollar will remain in place until monetary union is achieved has never looked entirely convincing. It has suffered a further blow to its credibility with publication of a report by a department of the Abu Dhabi government suggesting that the time has come for a serious rethink of GCC monetary policy, including revaluation and a shift to a basket of international currencies as an exchange-rate reference point.

The report, issued by Abu Dhabi's Department of Planning and Economy (DPE), marks the first time that any government body in the GCC has openly advocated ditching the peg since Kuwait went its own way in early 2007 by tying the Kuwaiti dinar to a currency basket. It is unlikely to presage an immediate change in policy, but it suggests that the option of revaluation during the transition to monetary union could be given serious consideration when GCC finance ministers meet in September, ahead of this year's summit in November.

Q. How will this affect investors like us..do reply!
A. It keeps us on the edge of our seat – keeps you sharp. We are getting more information, paying attention to details, and making the right decisions.

i got an if...then...statement...
if... dollar are depreciating...then...good luck on other currency..


yeah you are right, if it is happening with worlds powerful currency then what would be happen with other countries currency ???

it will continue to slide for a while
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