US Dollar getting very strong

[PtldPlatypus]

Most people haven't noticed it, but the Dollar has really jumped in value over the past few months relative to other currencies. Since July 9th (3 months ago), the dollar has gone up 8.4% on the Euro, 7% on the pound, 7.5% on the yen--about the only major currency it hasn't significantly risen against is the Chinese Yuan.

So, economy majors: why are we seeing this, what does it mean, and will it continue? I know currencies fluctuate constantly, but I don't recall having seen this kind of extended period of overall cross-currency appreciation from the dollar in the time since I've really been watching valuations (over the past 7 years or so).

 

[magnifier661]

Introvert spending.

 

[Denny Crane]

Partially, investors fear sanctions against Russia over Ukraine will hurt Europe.

And partially it's a way for Europe to encourage Americans to buy their goods.

 

[BLAZINGGIANTS]

I've noticed. The dollar strengthening against the Euro has been good for our business. Some economists say the dollar has 8-10 year cycles (think high tides and low tides). If this is truly the case, it's likely slack tide turned and the tide began coming in about a year ago.

Personally, I don't know enough about it, but I'm hoping this is true.

 

[OSUBlazerfan]

It was 1.26 vs euro in nov12....just has ebbs and flows

 

[Further]

Americans have big dicks!

 

[BLAZINGGIANTS]

Americans have big dicks!

Unless your mags!

 

[magnifier661]

Unless your mags!

You cock sucking bastard!!!!

 

[BLAZINGGIANTS]

You cock sucking bastard!!!!

Mags is like Beetlejuice. Except you only have to say his name once.

 

[donkiez]

Im thinking its because of "general global fears". Right now there is a lot of bad shit in a lot of different places and none of them are the US. Less investment elsewhere, and we pretty much capitalize in every scenario that doesnt result in complete WW3 or ebola mutant ninja attack.

 

[EL PRESIDENTE]

The Final party before Quantitative Easing ends and Interest Rates go up next year.

 

[PtldPlatypus]

The consistent increase has continued for another three months now, a strong 6-month upward trend.

• From .7372 EUR to .8253 EUR
• From .5844 GBP to .6445 GBP
• From 101.45 JPY to 120.13 JPY
• From .8953 CHF to .9923 CHF (Swiss Franc)
• From 1.066 AUD to 1.2281 AUD (Australian Dollar)

Between a 10%-18% increase on the value of USD v all of those currencies over a 6-month window. Time to start planning trips abroad--your purchasing power has increased substantially.

 

[speeds]

It is also strong compared to the Canadian dollar, up to about 1.15-1.20. Between 2011-2013 it was about par. Canadian goods are slightly more expensive but having even an extra 10% in your pocket after the difference is still good for travelers and traders. Come on [down] to the North, y'all!

 

[Denny Crane]

Strong dollar encourages imports and discourages foreign investment.

Not sure it's a good thing.

 

[MARIS61]

Started when Obama began speaking about penalizing companies that degrade our dollar by using foreign slave labor to avoid paying their fair share of US taxes.

 

[tlongII]

But what is it relative to the Mexican Peso? :goingtomexiconextmonth

 

[jlprk]

We're recovering from Bush, just in time for the next Republican president to blow up the economy again. Republicans hate capitalism.

 

[riverman]

Started when Obama began speaking about penalizing companies that degrade our dollar by using foreign slave labor to avoid paying their fair share of US taxes.

A fortune is being made right here in your backyard by non tax paying folks...pot farming. Has been going on for decades and that economy never figures into the GNP. So much for stats. I worked overseas and the tax cap was 72K per year tax free. Obama had nothing to do with it. It's been that way for a long, long time. As to the dollar, money market folks usually have at least 3 currencies to balance out the ups and downs.

 

[jlprk]

Strong dollar encourages imports and discourages foreign investment.

Not sure it's a good thing.

You are right. Yin and yang. American importers gain and American exporters lose from a strong dollar. When this happened in the 80s, Reagan gave it his usual silver lining. The media told us how we'd get more for our money as American tourists overseas, and left out that this would decrease foreign tourists coming here. The media is always one-sided.

 

[Denny Crane]

You are right. Yin and yang. American importers gain and American exporters lose from a strong dollar. When this happened in the 80s, Reagan gave it his usual silver lining. The media told us how we'd get more for our money as American tourists overseas, and left out that this would decrease foreign tourists coming here. The media is always one-sided.

There was a lot of concern among the lefty types about the Japanese buying prominent real estate like the Empire State Building and Rockefeller center. Sony bought CBS.

That was due to a weak dollar making the yen able to buy more US things (of any kind).

 

[jlprk]

There was a lot of concern among the lefty types about the Japanese buying prominent real estate like the Empire State Building and Rockefeller center. Sony bought CBS.

That was due to a weak dollar making the yen able to buy more US things (of any kind).

You think that it's leftist to oppose slant-eyed furriners buying American iconic landmarks...This is called, revisionist history.

 

[Denny Crane]

You think that it's leftist to oppose slant-eyed furriners buying American iconic landmarks...This is called, revisionist history.

Reagan was responsible, so they claimed while whining.

 

[jlprk]

That was related to the trade deficit permanently exploding when Reagan started exporting American industry overseas. Reagan really had little to do with it. That was the CIA's policy, to spread capitalism. Later, they brought in Clinton because he was the only Democrat who favored NAFTA, which had the same goal.

 

[Denny Crane]

That was related to the trade deficit permanently exploding when Reagan started exporting American industry overseas. Reagan really had little to do with it. That was the CIA's policy, to spread capitalism. Later, they brought in Clinton because he was the only Democrat who favored NAFTA, which had the same goal.

The entire US trade deficit with the world was $80B when GHW Bush left office.

The trade deficit with China alone was $80B when Clinton left office.

So, do you think there are alien corpses at area 51 too?

 

[jlprk]

The entire US trade deficit with the world was $80B when GHW Bush left office.

The trade deficit with China alone was $80B when Clinton left office.

So, do you think there are alien corpses at area 51 too?

I inserted the word "permanently" because the effect was permanent. Democratic presidents have been unable to untangle themselves from embedded policies started by Republican presidents.

For example, Little Bush tripled the cost of the intelligence agencies, and for some strange reason, Obama has been much slower than Clinton was to bail Bush out of the ensuing budget deficits. Republican changes are dug-in, permanent, and irreversible.

 

[Denny Crane]

And the welfare state is not permanent and dug in?

LOL

 

[PtldPlatypus]

But what is it relative to the Mexican Peso? :goingtomexiconextmonth

Since you asked, $1 is currently worth about 15 pesos. Easily the highest it's been in the past 5 years.

Have fun--bring us back something nice.

 

[riverman]

And the welfare state is not permanent and dug in?

LOL

I expect Mississippi to take offense to this post

 

[donkiez]

This is great news for me, my summer Euro trip is getting cheaper and cheaper!

http://www.cnbc.com/id/102317612#.

 

[tlongII]

Since you asked, $1 is currently worth about 15 pesos. Easily the highest it's been in the past 5 years.

Have fun--bring us back something nice.

Nice! Last time I went I just used dollars as my currency. I'll have to convert some to pesos this time!