Dollar's Decline Speeds Up, With Risks for U.S

Here's a Google redirect if anyone else can't read the article as linked:<p><a href="http://www.google.com/url?q=http://online.wsj.com/article/SB10001424052748703907004576279321350926848.html?mod=googlenews_wsj" rel="nofollow">http://www.google.com/url?q=http://online.wsj.com/article/SB...</a>

I think it very likely that most of the US government is cheering a devalued dollar; weak dollar = significantly increased exports, and jobs. America really, really needs both of those right now.<p>What's clear in the last few years is that nobody is going to shoot missiles or send troops over currency devaluation; this is a relatively simple way to boost your own country's economic strength.<p>Since we're more decentralized than say, China, those who'd like devaluation can't just mandate it, but I'd be stunned if a weak dollar is seen as a bad thing by the current Administration.

I'm not surprised. I took advantage of the exchange rate to move a bunch of my Australian dollars across to US dollars last week. But I was earning about 6% on my savings account in Australia, and I'm only earning 0.1% in my savings account in the US.<p>Obviously there's a huge element of pricing the interest rate discrepancy into the exchange rate, so one should expect the exchange rate to return to something more normal once the US economy starts growing again and interest rates become more reasonable.<p>(Actually in related news, can anyone think of a good place to invest fifty thousand US dollars right now?)

Been going on for a while -<p><a href="http://www.ritholtz.com/blog/2011/04/dollars-biggest-decline-2001-08/" rel="nofollow">http://www.ritholtz.com/blog/2011/04/dollars-biggest-decline...</a><p>during the crisis the dollar strangely stopped declining partly due to a 'flight to quality', a lot of other countries were in even worse shape.<p>When you need to sell a lot of debt to foreign investors, they need to think the currency is at a level where it won't decline too much in the future, and if they don't think that, the dollar goes down or interest rates go up.

The USD has been trending more strongly in relation to the NOK. (<a href="http://www.google.com/search?sourceid=chrome&#38;ie=UTF-8&#38;q=1+usd+in+nok" rel="nofollow">http://www.google.com/search?sourceid=chrome&#38;ie=UTF-8&#3...</a>) Probably an irrelevant currency for most, but the Kroner has been extremely strong and independent (IMO). Can anyone explain how this trend relates to the above article?