Because there is increasing demand for using the Euro and less demand for use of the US dollar. The US has borrowed about $500 billion dollars for the so called war on terror . When a country goes too far in debt it`s currency is devalued.
Why is the exchange rate from the USD to the Euro continuing to worsen? What are the factors?!?
Econ 101 %26gt;%26gt;%26gt; basic economics. it%26#039;s the increasing trade deficit. see this http://news.yahoo.com/s/ap/20070213/ap_o... just part of the plan from the idea man.
Why is the exchange rate from the USD to the Euro continuing to worsen? What are the factors?!?
The trade deficit may contribute, but its also true that sometimes in the face of large trade deficits, the dollar strengthens. My advice -- it%26#039;s like cattle: don%26#039;t try to understand %26#039;em, just rope, throw and brand %26#039;em.
Probably some one-time trend people don%26#039;t quite understand. It WILL cycle back, I%26#039;d happily bet my money on that -- it virtually will have to as price deltas between the US and Europe become too distorted.
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