Why is the US dollar losing so much value when the Dow market is high? will it ever go back up in va

In germany unemployment rate is very high but the euro keeps going up against the dollar. this dont make sense? why is the philippine pesos getting so strong and the dollar weak?

Why is the US dollar losing so much value when the Dow market is high? will it ever go back up in value?

It%26#039;s all about interest rates. When interest rates are low n the US, less money is coming into the US as big money players would rather put their money where they can get a better return.

Since interest rates are lower, money from the debt market will move into the equity market. The big money always wants to get a better return, so money flows where it flows easiest. When interest rates go up, money will then flow back into the debt market, and consequently, the equity markets will suffer.

Will the dollar gain against other currencies? This depends with the FED. If they decide to raise interest rates, then the USD will gain in value. If they decide to keep interest rates low, then the dollar will not gain in value, but the stock market will go up.

The unemployment rate is a key indicator. This tells Big money if interest rates are still going to go up or not. Since the EURO is stronger vs the USD, then you can bet that interest rates on the euro is better compared to interest rates in the US.

The philippine peso is stronger vs the USD, because of interest rates. As you can see by now, interest rates in the US at this time, is predominantly lower as compared to other countries. This explains the general weakness of the USD compared to other currencies.

Why is the US dollar losing so much value when the Dow market is high? will it ever go back up in value?

loan

You have your bank account in Bank of America and they pay you 5% annually.

Citigroup increases their interest rates to 6% annually.

Most people (With millions of dollars) would switch their bank accounts from Bank of America to Citigroup.

This is what is happening but with countries.

Why would you lend your billions to the United States of America for 5% when you can lend your billions to Mexico for 7.5% or Brazil for 15% in USD?

Inflation is high in the United States of America.

Crime is high in the United States of America.

Education is low in the United States of America. (Try hiring a Cardiologist or a Neurologist in the United States of America with a salary of less than $100,000.00 USD)

The CYP is going to be replaced this 01/01/2008 by the EUR

The MTL is going to be replaced this 01/01/2008 by the EUR

The SKK is going to be replaced this 01/01/2009 by the EUR

The LTL is going to be replaced this 01/01/2010 by the EUR

The last time a country replaced its currency with the USD was El Salvador in 2001

Nobody wants Al Qaeda as their enemy.

About Germany:

Inflation was 1.7% (2006) versus 2.5% in the US.

Germany sells $1.133 trillion but only buys $916 billion

I don%26#039;t have to explain to you this means you get richer and richer everyday because you are selling more TO THE REST OF THE WORLD and you are buying less FROM THE REST OF THE WORLD

If you compare this to the US:

US Sells $1.024 trillion

US Buys $1.869 trillion

Not exactly what we call a good business.

The USD is not going back up anytime soon.

The Khaleeji is coming in 2010|||you need to research the dow back in the mid 1970%26#039;s when it lost confidence and fell fron 2,200 to 455 in one week,brokers quit and drove taxi cabs