The Dollar

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Dollars Per Euro

The Euro has only been around since Jan 1999. The graph shows the number of dollars per euro since Jan 1, 1999.The dashed line is the current exchange rate.

This is the lowest level for the euro against the dollar since April 2006.

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Cartoon: Weak Dollar

Oil and the Dollar

One factor that has sent the dollar down and oil up recently has been the Federal Reserve's months-long round of rate cuts. In an attempt to stimulate the ailing U.S. economy, the central bank has cut rates by three percentage points since September. But the rate cuts are also inflationary, weakening the dollar and sending oil prices higher.

"The weak dollar is a major detriment to the price of oil," said Stephen Schork, publisher of the energy industry newsletter The Schork Report. "It's keeping prices artificially high."

Since this time last year, the dollar has plummeted over 10% against global currencies, and oil has climbed about 80%. As the dollar continues to depreciate in value, investors have bought oil futures as a hedge against inflation.

Also, oil is priced in dollars worldwide, so a falling dollar provides less incentive for oil-exporting countries to increase output, or for foreign consumers to cut back on oil use.

read the CNN story

Falling Dollar

from the Skeptical Optimist

We are back down to 1996 value. Not horrible, but there is no end is sight.

Cartoon: Housing Crisis Meets the Falling Dollar

Cartoon: The Falling Dollar

Declining Dollar

Read the Economist story

Strong Pound and Weak Dollar

Who are the winners and losers from the weakening dollar?

read the BBC article

Supermodel Prefers Euro to the Dollar

The world's richest model has reportedly reacted in her own way to the sliding value of the US dollar - by refusing to be paid in the currency.

Gisele Bündchen is said to be keen to avoid the US currency because of uncertainty over its strength.

The Brazilian, thought to have earned about $30m in the year to June, prefers to be paid in euros, her sister and manager told the Bloomberg news agency.

read the entire story

Weak Dollar, More Exports

read the WSJ article