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Dollar currency loosing its sheen

Tags : US dollar,dollar,green currency,dollar currency,weakening us dollar,
Industry : Equity Research/Analytics
Functional Area : Equities, India
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About "Dollar currency loosing its sheen" topic:

The greenback has been declining relative to other major currencies for months. The dollar is down 14% against other major currencies since March.

It is said that “The typical pattern is that good economic news is bad for the dollar”  our goods and services are becoming cheaper to export, and all of a sudden looks more attractive to consumers in other countries whose currencies are rising against the dollar, And now with emerging markets like China and India, where there’s a rising middle class that between the two countries is more than 300 million people, which is about equal to the total population of the whole United States. All getting ready to spend money.

what are the positive and negative sides of this weakening of US dollar, and what will this hold for the investors across the world, and which direction is the markets across the world taking at the moment? There are many questions raised against the US dollar in the current times, let us come up with some answers for this trend what we are seeing.

2 insight , 6 debates , 2 idea contests , 3 question on topic: "Dollar currency loosing its sheen"
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(rate this)
1 Strategic Reduction
2 Trade balance
Mathew Cherian  |  Added idea  "Strategic Reduction"  |  2 years ago
Paul Krugman in today column in BL acknowledges that US dollar is being devalued as a strategic approach to reduce the trade deficit of US, ie; their import will reduce and exports improve due to devalusation of dollar. He also states that the...
Archana Singh  |  Added idea  "Trade balance"  |  2 years ago
I think the main thing that effect the value of dollar is the trade balance.That is  difference between imports and exports. Recently the US has been running a trade deficit with the rest of the world . And increasing trade deficit is making...
 
 
Ideate: "What according to you are the Critical Factors which effect value of U.S Dollar?" deleted from your view.
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(rate this)
Yes 
12
VS
4
 No
Deepak Agrawal  |  Argues in support of  "Yes"  |  2 years ago
It’s very difficult to remove dollar dominance overnight. But I think the way US ECONOMY is shaping up with huge fiscal deficit  and speed of minting money without realizing future consequences of it, the value of $ will decline gradually over...
Japan Shah  |  Argues in support of  "No"  |  2 years ago
I agree with Mathew, he has said it all.. Just imagine the daily trade happening across the globe in denomination of Dollars, the dollars outside US, the dollar reserves with various countries.. It practically not possible.. The dollar may go...
Mathew Cherian  |  Argues in support of  "No"  |  2 years ago
"The grass at the other end of the river looks always green". It is not easy to replace dollar with any other currency as the International currency. Of course  there is something called the Weber axion which states any change made or policies...
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Debate: "Secret plan to ditch the US dollar's dominance." deleted from your view.
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(rate this)
Yes 
5
VS
4
 No
Vaibhav Rastogi  |  Argues in support of  "Yes"  |  1 year ago
Anyone can do Forex Trading No Qualification required No English Knowledge required No Mathematic knowledge required No Advance computer knowledge required No Share Trading Knowledge required Start trading immediately From basics to advance level...
Pierre Pienaar  |  Argues in support of  "No"  |  2 years ago
Yes, there will be down trend, but it's quite interesting that various fundamental News, like Iran's nuclear capabilities let the Dollar fall, but the results in the German election strengthen the dollar.   However, I find Technical Analysis more...
Mathew Cherian  |  Argues in support of  "No"  |  2 years ago
Pierrie, I think it is not support but resistence since the currencies mentioned are appreciating. I think the source got irrational. The rational is if you support an appreciating currency too much then the it will affect the Exports and a...
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Debate: "U.S. Dollar Trading (USD) finally hit a bottom " deleted from your view.
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The greenback has been declining relative to other major currencies for months. The dollar is down 14% against other major currencies since March Dollar is making a free fall due to the huge growing US trade deficit, and the large Federal budget deficit. The trade gap of US along with the war in Iraq which is working as a fuel is increasing US fiscal deficit. In August, the gap between what the U.S. exports versus what it imports narrowed to $30.7 billion, from $31.9 billion, as exports rose and imports fell as per the Commerce Department. The US budget deficit hit a record $1.4 trillion (£877bn) in the year to 30 September. The deficit was equal to 9.9% of gross domestic product (GDP) - mo...
 
 
Insight: "WHY I AM FALLING ?-DOLLAR" deleted from your view.
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Prakash Khairnar  |  Answered  |  2 years ago
Both are currencies. INR is Indian national Rupee, our currency. Dollar is used in many countries. Normally, when we say Dollar, we mean USD(U.S.Dollar). It is used for international business transactions. 1 USD= Rs. 49(Approx.)
 
 
Answer: "why there is a difference between INR and Dollar?" deleted from your view.
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I have observed that as US dollar continued to gain there were decrease in metal prices. Aluminum prices came down,zinc fell and in case of many other metals also same thing happened. December gold and silver showed a great decline, January platinum price came back and in late morning trade in New York December palladium also showed a negative trend. How do you see this trend? What is your take on this?
 
 
Insight: "Metals prices goes down, as the US Dollar continued to gain." deleted from your view.
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(rate this)
yes 
5
VS
2
 no
Ramakrishna Perumal  |  Argues in support of  "no"  |  2 years ago
No to badla many people have suffered due to badla and many people have looted money because of badla.
Chirag Kabani  |  Argues in support of  "yes"  |  2 years ago
BIGGGGGGGGGGGGGGGGGGGGGGGGGGGG YESSSSSSSSSSSSSSSSSSSSSSSSSSSS FOR BADLAAAAAAAAAA SYSTEM ....   All i want to Know to Say to the people Who say NO it ...:) get Some old vaida Rates News papers ...and Do some paper trades u will understand how much...
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Debate: " BSE'S CARRY FORWARD SYSTEM (BADLA) - WE MUST RE INTRODUCE THAT OLD IS GOLD" deleted from your view.
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Yes 
1
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 No
Syed Thameem  |  Argues in support of  "No"  |  2 years ago
I agree with Archana's view. The USD will tumble again in the world market. Once OPEC agrees for receiving the oil money other than USD means, it will big blow. Another main concern is Middleast elite rich are converting their USD investments,...
Ekta Dutta  |  Argues in support of  "Yes"  |  2 years ago
It think both US monetary and fiscal policy will join forces to push long-term rates higher when quantitative easing ends. The end of quantitative easing in 2010 and the start of the tightening cycle in the US are both supportive forces for the...
Archana Singh  |  Argues in support of  "No"  |  2 years ago
I don't think U.S dollar will strengthen in 2010 because their level of external debt is very high and the fiscal deficit is almost 13.5 per cent of its GDP. U.s economy is not able to export to other countries and it is badly effecting the...
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Debate: "Will U.S Dollar strengthen in 2010?" deleted from your view.
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How downfall of dollar effect oil price? pls share your views...................
Archana Singh  |  Answered  |  2 years ago
Crude oil is priced in dollars. So when the dollar falls, oil producers demand a higher dollar price to make up for the lost purchasing power relative to other currencies, such as the Japanese yen or the euro.
 
 
Answer: "How downfall of Dollar effect Oil Market?" deleted from your view.
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(rate this)
Yes 
1
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1
 No
Esha Johar  |  Argues in support of  "No"  |  2 years ago
I don't think falling dollar would make U.S wealthier because it will cause inflation in the US. So the prices of the goods will increase and result in less demand for products there by slowing down the economy. Imports would become more...
Jyoti Rath  |  Argues in support of  "Yes"  |  2 years ago
I think its true that dollar decline is making U.S wealthier because they are least affected since most of their assets are held in real estate and stocks. As dollar is declining, there is a high rush to buy more stocks and real estate in US. So...
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Debate: "''Dollar decline makes U.S wealtheir'' What do you say?" deleted from your view.
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There has been a high decline in the value of dollar and it is going to effect the other...
 
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