This was posted by ZC1 in the FOREX thread and should provide for an interesting discussion by those of us here who know everything there is to know while not knowing much at the same time:
Any economic intelligence on this site that can explain why is the dollar so high these daysand where it is expected to be at over the next year? Just got a rate of 45 today, July 30th 2015. It is a double edge sword in that I like the extra pesos in my pocket today but know that prices will soon follow.
Yes, the dollar is strong and has been for some time. When will it not be strong? Some fortune tellers say soon.
You are correct in fearing that an increasing value for the dollar will cause peso prices to rise. And if the dollar falls, those prices will remain where they were in a ratchet effect of prices ever going upwards for most items.
Any economic intelligence on this site that can explain why is the dollar so high these daysand where it is expected to be at over the next year? Just got a rate of 45 today, July 30th 2015. It is a double edge sword in that I like the extra pesos in my pocket today but know that prices will soon follow.
Yes, the dollar is strong and has been for some time. When will it not be strong? Some fortune tellers say soon.
You are correct in fearing that an increasing value for the dollar will cause peso prices to rise. And if the dollar falls, those prices will remain where they were in a ratchet effect of prices ever going upwards for most items.