Fall in value of US Dollar
Forex Traders have been sitting on the edge of their seats recently as the biggest currency in the world, the US Dollar (USD) seem to suffer a collapse and depreciated against other major currencies in the world. Such fluctuations has the ability to make millionaires or bankrupts overnight.
The reason for the fall lies mainly with the originator – United States. While the gloom over the global financial crisis might have subsided, the federal government still needs a size-able budget to keep the government going, to keep the economy going and to even keep the war in Afghanistan and Iraq going. All these money comes from loans, issued in the form of treasury securities, which essentially has the same effect of issuance of new US Dollars. As the US government continues their trend of spending and chalking up budget deficit, the amount of securities issued increases. This essentially depreciates the value of the US Dollar (more…)
