% | $
Quotes you view appear here for quick access.

United States Oil Message Board

  • eastofeastside eastofeastside Aug 20, 2010 11:45 AM Flag

    Why is the dollar rising?

    When the markets have been moving in the opposite direction and data and indicators are coming back negative and weak?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • "When the prices of wheat, oil, copper, corn, gold, silver, etc, etc begin to skyrocket,"

      why do you think all these will skyrocket, and more importantly, when, may i ask?

      only please, don't bring up the Chindia argument, come up with something original for once, you do have many thesis, do you not?

    • One reason could be the fear of deflation.

      That is, by accumulating and holding dollars one will be able to buy products and services in the future at cheaper prices if the prices of these product come down in the future.

      If you think that a house will be cheaper in a year you will hold your dollars now in anticipation of that lower price. Less dollars in the system (or in circulation)...the stronger the price of the dollar.

      • 1 Reply to andthepoint
      • And - that and also the recent surge in treasuries has helped the usd, as you need to convert other currencies into usd in order to buy bills, both as a foreign or domestic investor.

        the real conundrum right now is why with all of this strength in usd the gold is not falling off of the cliff? it is afterall considered a hedge against inflation, right? i think that with all that's going on it has also become a good fear factor in the world affairs.
        jmho, i'm sure there are more factors in the price of usd than just these, don't you wish you could know just half of them?...

11.28-0.15(-1.31%)12:27 PMEDT