Dollar Charge?

[Dirk_brijs]

any ideas on what this sudden and I might add fast rise of the US Dollar suddenly compared to the Baht brought to us?

Not that I am complaining the more I get for my Dollar the better but is this a temporary thing or will it go for a bit longer?

[Gumballl]

The dollar will rise and fall in the same fashion as global markets will. Whether this recent upsurge lasts a week, a month, or even a year is anyone's guess.

It would be in most everybody's interest that the dollar continue to rise to help curb the increasing cost of oil. Higher oil prices tend to affect other areas of the economy, hence causing inflationary pressures on anything requiring transport from A to B (e.g. food, clothes, medicine, etc).

This cause/effect syndrome is already quite apparent in Thailand. If it continues, and not just in Thailand, but other countries too, then there is a risk for civil strife if the average person cannot even afford to pay for transport to go to work, much less pay for basic food items. I think that the major industrial powers are trying to work together to stifle the decline of the dollar with the hopes of staving off economic chaos in many poorer countries. Whether or not their actions will have any impact is not easily known. After all, it is the unpredictable market forces that pin a value to the dollar, not governments.

Edited May 14, 2008 by Gumballl

[Dirk_brijs]

so what your saying basically is that poorer countries try to make the dollar go up to counter the high oil prices?

But doesnt that just make the oil (which is traded in the same dollar) even more expensive for those countries who most of the time do not have the Dollar as their currency???

Isnt a weak dollar just better for them so to get more value in oil for their own currency?

[Naam]

It would be in most everybody's interest that the dollar continue to rise to help curb the increasing cost of oil. Higher oil prices tend to affect other areas of the economy, hence causing inflationary pressures on anything requiring transport from A to B (e.g. food, clothes, medicine, etc).

you're a lecturer of macro-economics?

[Firefan]

Naam; be gentle! We are just not smart enough to get it! Cheers!