Why is the us dollar depreciating against the other major currencies?
Answer:
your imports are greater than your exports,you owe heaps,better invade Iran & try to sell their oil
There is a lack of respect and faith in the leadership and decisionmaking ability of the ruling regiem of the US
Because there are too many of them and you can buy everything else with another currency. Everything is made somewhere else and the reason people still use dollars is for tradition.
Except boeings, awwwright, you need dollars to buy boeings.
Interest rates are lower in the US compared to in other countries. This entices people to invest their money in other countries, driving up the value of those currencies. Our rampant spending and building up of debt is putting more US dollars into the world, this is causing inflation and a surplus of US dollars world wide. The first person who answered is completely wrong.
China is keeping our interest rates down by buying up so many cheap bonds. This keeps our currency low. Our deficit really isn't the biggest problem, and the war is definitely not a main reason for our inflation.
No Americans saves any money and we are in debt and the government went in debt for this stupid war and it is draining us,
Because the rest of the world are saying “all your base are belong to us”
America is running a massive trade deficit*. By a strange coincidence this trade deficit is almost equal to the budget deficite (government borrowing) by Bush 2 in order to give his already very rich mates a tax cut and pay for his jaunt in iraq / afganistan.
The Asian / Middle eastern countries are buying cheap dollars as an investment or to keep their currencies low against the dollar so that their cheap DVD players / clothes can feed a growth in American consumerism (also mostly bought by running down savings and borrowing heavily due to the low interest rates).
Billybustky is right. For me, it is a good thing, at least, for awhile. US dollar depreciating means it is getting cheaper to buy US goods and services. We will spend money inside our country and foreigners will purchases more of our goods and services. These will definitely will bring up our GDP.
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