The Dude

Holding Multinationals? Look Out for the Rising Dollar

I dont think there is any evidence that the dollar is in a long downward spiral. Things are very negative in this country right now for many good reasons. We suffer from a lack of leadership and our government spends far too much money. Of course this results in excessive national debt which will result in more borrowing which will result in higher interest rates. The higher rates will help prop up the dollar. I think as Europe goes through their coming recession the Euro will be tested. In bad times are all those countries willing to stay together? The countries will come out of their recessions at different times and it will strain the Euro tremendously. As long as commodities (particularly oil) is denominated in US dollars the dollar will always rebound ahead of other currencies.