There are reasons why the U.S. dollar is in the process of weakening against the Euro, Yen, Great British Pound, Canadian Dollar and other currencies. Part of the reason is due to a strengthening of the global economy which is creating a shift in psychology for many countries to begin favoring their own currencies for savings and investment in preference to the greenback. Beyond factors of subprime lending and the credit crunch, money supply is also a fundamental driving force for currency values. GDP of emerging economies has grown steadily. The Fed is actually printing less money which would theoretically create more demand and higher value and yet this has not affected the continuing decline. The bottom line is that the demand for the U.S. dollar simply is not growing but is declining in the global market place
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