The value of a dollar – does it matter?

The value of the US dollar is approaching an all-time low against the other major currencies of the world. Not only does this increase the costs of goods from or travel to other countries, but it could make the Chinese, the Japanese, the Saudis, and others think twice about purchasing US treasuries. The latter has supported the dollar in the past despite the Federal Reserve’s issuance of unprecedented amounts of dollars. If the dollar drops below 80 (a closely tracked number that measures the value of the dollar against a basket of foreign currencies), a freefall could occur, wrecking havoc with the US economy. Are you aware of the danger, and if so, have you planned a strategy for coping with it?

Published in: on July 18, 2007 at 4:16 pm  Comments (1)  

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  1. The value of the dollar, as routinely calculated by its value versus a basket of currencies, dropped below 80 briefly last week, and is poised just above 80 presently. We are witnessing some truly historic times. Let us hope our country survives them.

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