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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (74984)3/17/2007 8:55:28 PM
From: Moominoid  Read Replies (1) of 94695
 
It's pretty cheap against the Euro and some other currencies (Pound, Swiss Franc). It can't go down against those in the long-run unless there is more inflation in the US than in those countries. It is close to fair value with the Aussie. On the other hand the Yen is supposedly cheap (hard to believe but that's what they say). The Yuan and other emerging country currencies will likely rise against the dollar in the long-run. Of course Canadian Dollars are very important in the US Dollar Index (and Mexican Pesos). Weighing all this up I'd expect the Dollar to be stable.

Personally I treat the USD as cheap and both me and my Mom are and will accumulate money in USDs slowly over time and reduce the weight of the Aussie (me) and Euro/Pound (her).
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