Quote:
Originally Posted by Tron_fdc
Okay, so WTF is going on? The US dollar is STRENGTHENING against pretty much every currency on the planet, when their government has brought them (arguably) closer to a depression than at any point since the 30's.
Can someone explain that to me? Shouldn't the US dollar WEAKEN right now?
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US investors are hurting and selling their international holdings in order to shore up things at home.
Simply put, US companies can't borrow the money they need anymore, but they need to get that money from somewhere. So they are selling their holdings, both nationally and internationally. When they sell their international holdings, they then buy US dollars. That increases demand for the US dollar, increasing its value.
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