Forum - Low value of US dollar

Doesn't look like I'll be traveling to Europe this summer or any where else. The US dollar has hit a new low. read on.

Dollars tough to sell 2 hours, 21 minutes ago



The U.S. dollar's value is dropping so fast against the euro that small currency outlets in Amsterdam are turning away tourists seeking to sell their dollars for local money while on vacation in the Netherlands.

"Our dollar is worth maybe zero over here," said Mary Kelly, an American tourist from Indianapolis, Indiana, in front of the Anne Frank house. "It's hard to find a place to exchange. We have to go downtown, to the central station or post office."

That's because the smaller currency exchanges -- despite buy/sell spreads that make it easier for them to make money by exchanging small amounts of currency -- don't want to be caught holding dollars that could be worth less by the time they can sell them.

The dollar hovered near record lows on Monday, with one euro worth around $1.58 versus $1.47 a month ago.

(Reporting by Svebor Kranjc, writing by Reed Stevenson)

you have to also remember that the euro started off strong but then went down and now it is on the rise

I have been watching the stock markets on the news lately. It seems prettty volotile from week to week; and now more from day to day. I can see that our dollar has gone down in value. I'm sure that also hurts our economy too. I'm guessing the best thing to do is have knowlege and wisdom in knowing what to do when facing problems like these. Maybe, things will even out in the markets sometime. Thanks paul for this post. Take care and have a good day sweetie.
Hugs,
12pleaseu

And I read that can be also positive for the US economy, as the fall of dollar make American goods cheaper and more buyable. Doesn't it?

The fall of the dollar makes U.S. goods relatively cheaper abroad, but it also makes foreign goods imported into the U.S. more expensive.

I believe it was President Nixon in the 1970's instituted a wage and price freeze. It was an extreem measure in the time of 21% intrest and very unpopular with every one except compaines but, it did regin in inflation. Of course the working class people suffered but it brought big business into control as well.
It may well be possible that a wage, price and profit freeze will be necessary to reign in this new wave of inflation. The only way to ensure this is to elect a new congress and senate as well as a new president.
REMEMBER, the professional politicians weild more power than one president. They are the ones who are voting to make these bail outs to the companies and not to the people.

I think that big business own even more power than professional politicians. At least if talk about some transnational corporations.
Do you mean that the next price/wage freezing will make th US totally controlled by big business?

Hi Letusdoit,
I agree with what paul,daka,and kotikkk are saying as well. Yes,I also believe the power lies in the hands of powerful companies-lobbyists;and all the politicians as well. Knowing who and what to vote in or out could definately help the economy or cause more problems in the economy.
Hugs,
12pleaseu

I don't know about the other people but the border between politicians and bosses of powerful companies often in not clear for me.

I cant believe how much value the US Dollar has lost. Scary.

Here's more bad news for the consumers. Meaning us.

Food and energy costs lead wholesale prices to soar in March By MARTIN CRUTSINGER, AP Economics Writer
1 hour, 8 minutes ago



Inflation at the wholesale level soared in March at nearly triple the rate that had been expected as the costs of energy and food both climbed rapidly.

The Labor Department reported Tuesday that wholesale prices rose by 1.1 percent last month, the largest increase since a 2.6 percent rise last November, which had been the biggest one-month jump in 33 years. Analysts had been expecting a much more moderate 0.4 percent rise in wholesale prices for the month.

Core inflation, which excludes energy and food, was better behaved last month, rising by just 0.2 percent, down from a worrisome 0.5 percent rise in February.

For the past 12 months, wholesale prices are up by 6.9 percent and core inflation is up by 2.7 percent, the biggest year-over-year increase in nearly two years.

The inflation pressures are occurring at a time when the overall economy is slowing and many analysts believe may have toppled into a recession. That raises concerns that the country could be facing another bout of stagflation, the malady that last occurred in the 1970s when economic growth stagnated but inflation kept rising.

Such a development would put the Federal Reserve in a bind. The central bank has been cutting interest rates in an effort to combat the current slowdown. However, if inflation pressures keep rising, it might be forced to stop cutting interest rates for fear that it would make inflation worse.

For March, energy prices jumped 2.9 percent, the biggest increase since November. The price of gasoline was up 1.3 percent while natural gas rose by 4.2 percent. Home heating oil shot up by 13.1 percent and diesel fuel, used to power the nation's trucking fleet, increased by 15.3 percent.

Analysts believe the economy will be hit with more energy pressures in coming months, reflecting the fact that crude oil costs are remaining at record levels above $111 per barrel.

Food costs rose by 1.2 percent in March, reflecting big increases in the price of vegetables, rice, and beef.

Outside of food and energy, the price of soap and detergents jumped 2 percent, the biggest gain in more than two years, while pet food increased by 1.3 percent.

However, the price of new cars dropped by 0.2 percent and the cost of light trucks was down 0.3 percent, indicating the struggles that automakers face as a weak economy dampens demand.

The government will report on consumer prices on Wednesday with the expectation that they rose by 0.3 percent in March

Hmm, the numbers in this article don't look catastrophic meanwhile. But I am a dabbler about the economical processes, I even cannot get if the fall of dollar is good or bad for the US and world's economy!