When I returned back to Switzerland in 1971 after having lived and worked in the USA for 20 happy years (eye problems made it impossible to drive a car) I exchanged my savED dOLLARS into Swiss Francs and for each $ I got Fr. 4.30 while the exchangrate now stands at only one $ for Fr. 1.14.
When several years ago the Euro as the currency of the EU was created there was wide disbelieve, if the Euro could stand up against the
Dollar and at first the Euro was losing ground against the dollar. No longer, now the Euro gains on thrength as the dollar is losing its. While the Bush administration claims to be in favor of a strong Dollar, the massive budget deficits and the cpnstsntly negative trade ballance are blamed for the miserable performance of the dollar. While this situation is beneficial for the US export industry, sceptics fear that it is only a matter of time until the Japanese and other Asian countries will stop buying US treasuries an this support the budget deficit. And hen the treasury sould have to make buying its debt issues much more attractive so US citizans would buy them, which would mean much higher interest rates and that would be very bad for the economy and the stock market.
This forum is started to discuss the problems around foreign exchang rates and its influence on the economy and the stock and bond markets. |
