Dollars fall in value

Scott,

I have been buying lots of computer parts to repair things damaged by the power situation this week and I am not seeing any big changes in the exchange rates on my credit cards. Saturday I received 35.30:1, and yesterday 34.96:1. So 1/3 of 1 Peso less per dollar over that time.

Tom (aka XR)

I changed at 35.70 in Puerto Plata yesterday & I see today Yahoo is quoting exchange at 36.10 (normally about 0.50 what one can get on the street I have found).

The only thing I see the dollar falling against is the GB P & Euros (we discount the Yen because they don't play fair!!) & I doubt that situation will last much longer. - Grahame.

BushBaby said:

The only thing I see the dollar falling against is the GB P & Euros (we discount the Yen because they don't play fair!!) & I doubt that situation will last much longer. - Grahame.

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The Canadian dollar is up bigtime against the US dollar this year.
The Loonie is up around 20% so far this year.
This is a massive move in a very short time.

If i want to buy groceries or gas

Escott said:

Oh stop, no one uses the Canadian Dollar. Even though Canada is most famous for being the northern neighbor of the US there isn't a market for your money.
Who gives a crap about Canadian money anyway.

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I give a crap since I live here. The post was off topic though you got that right. If it was meant to imply bring CAD$ to the DR that's for Nimrods pure and simple.

Actually to his point the fact that the CAD has gained 20% against the US$ means people do want it and there is less of a market for your money to be honest.

The dollar's strength or weakness on the world market has nothing to do with the peso's performance relative to the dollar. Occasional strength in the peso is likely to be very rapid knee-jerk, followed by persistent (not necessarily fast) decline.

Back to the world market, although the dollar has been weak lately, it's not guaranteed to stay that way.

It has been in a 40 year bear market - originally weakening in the Kennedy administration. Since then, I think that it has made a new low (against hard currencies) under each successive president. Under Clinton, the dollar made its low early in his first administration, then improved dramatically.

Early this year the dollar started weakening rapidly against the other hard currencies. By the early summer, it was approaching its all time lows against the Euro and Swiss Franc. Then it recovered quite a bit before turning down again.

It's still not quite as low as it was in the early summer, though, and it's not a foregone conclusion that it will make a new all time low against the Euro especially. The Euro is not nearly as "hard" as the Swiss or yen. The reason is that the 3 original hard currencies (German Mark, Dutch Guilder, and Austrian Schilling) were greatly diluted when they got mixed with the weaker currencies to make the composite Euro. Already the Euro is being strained by deficit spending by some of its members. (Pity the poor Dutch, Germans, and Austrians who got snookered).

Furthermore, even though currency trends are very persistent, even they don't last forever. Which will it be ... will the dollar drop to new lows against the Swiss and Euro ... or will it break a 40 year trend and recover?

The Bretton Woods Economic conference just after WWII set up the IMF to implement a fixed exchange rate between most world currencies. Currencies were not allowed to truly float until the US$ gold standard was removed in 1971.

It took many years to unwind the effects of 25 years of a global fixed exchange rate regime. Since the early 80's, the US$ has fluctuated a lot , but the net effect has been very little change.

US Dollar

IS a manisfestation of the US Govt. Long as the dollar is down, you can afford to ship cheap goods to US and we still buy then for nothing, but you can afford to produce them AT profit

It is NOT GOOD to have you home currency strong against anothers, what does it serve except selling averages of the currency?

US productives are attractive as the cost is low, ofsetting balances to Canada and Mexio,,,and o maybe Japan