Overview of the greenback decline

Résumé du document

The US dollar is the currency used in most transactions- whether they are financial or current around the globe. All institutions and individuals use this currency to facilitate dealings and businesses overseas, instead of using their domestic currency. Globally, the US dollar is the world reserve currency. Technically, the demand for that currency is supposed to be high and its value to remain stronger than ever- but it's not the case- since 2002 the US dollar has been in steady decline against the pound or the euro.

The US dollar is not facing a currently good state because the currency is undervalued and weak. How come is it happening ?

Extraits

[...] Finally, the US dollar is facing nowadays a hard path through its recovery program. The US current account deficit is still having a heavy weight on US dollar exchange rates shoulders. The government monetary and fiscal policies are just representing a menace for foreign investor, therefore for the demand of the currency- who represents the demand of the currency. The government role in such financial difficulties is important as cited above but certainly should not take total control of a significant currency as the US dollar, which can run out of control. [...]

[...] Another reason is the constant falling of demand of US securities. in addition countries with large current account surpluses have stored a large share of their wealth in dollar denominated assets further supporting demand for US debt By importing more and more goods from China the latter has been feeding US governments debts: nearly 50% of the treasury securities are owned by public and private foreign investors. Investors are non longer seeking for profits and invest mostly in short term in treasury securities and foreign direct investments-Their main return interest is Asia. [...]

[...] Overview of the greenback decline The US dollar is the currency used in most transactions- whether they are financial or current around the globe. All institutions and individuals use this currency to facilitate dealings and businesses overseas, instead of using their domestic currency. Globally, the US dollar is the world reserve currency. Technically, the demand for that currency is supposed to be high and its value to remain stronger than ever- but it's not the case- since 2002 the US dollar has been in steady decline against the pound or the euro[1]. [...]

[...] The dollar is seemingly willing to fall again according to multiple factors and that can have a relevant impact not only on the USA but also on a larger scale, which means for the entire world economy-as it is the world's reserve currency. Works cited Is the Dollar Really Safer Than the Euro? Oil Prices.com. http://oilprice.com/article-is-the-dollar-really-safer-than-the- euro.html Will the US dollar continue to fall , Economics Help. [...]

[...] Therefore the dollar will continue to fall because there is less people who will buy their debts. Moreover, the slowing growth of US GDP is way lower than the rest of the world. Concerning the carry trade pressure, the US dollar is being a target. In other words, given the fact that US interest rates are relatively low and their current budget deficit, the US dollar is being sold for the purchase of foreign currency with higher interest rates ( for instance Canadian dollar). It leads to a depreciation of the US dollar. [...]