Value of US dollar going down? what does this mean to us?
953553
It means imports will cost more and our exports will cost less in other countries. So it should be bad for consumers but good for businesses that export things.
981012
Post it in US Dollars and your local currency\nInternational buyers will understand US dollar value without having to convert, and local potentials will be catered to also.
574143
They use euros now. It would be worth about a dollar.
687591
YES! do u know one dollar is worth ten pesos over there? People come here because the almighty US dollar is worth more and is valued anywhere in the world. No one wants to take land away from the US, it's about making ends meet.
321020
its the unstable US dollar, its the world currency, if the US economy stumbles then other countries need something to bank upon thats why gold prices are increasing, and oil prices please ask Mr Bush!!!!
1087234
I second Naj. Yeah, the US dollar is worth about $65+ Jamaican, but having US$100 in your pocket won't make you rich in Jamaica. Your quality of life is going to depend on a mess of other things like where in Jamaica you live, inflation, interest rates, etc. A few years back, I was working in Kingston when the US dollar was worth $42 Jamaican, my salary was the equivalent of US$1000 per month, and that was a livable wage for me as a single person. If I were earning that same salary now, I would have a completely different experience. As I said, I depends on many more things than just exchange rates.
498564
There are three good reasons that pop into mind.\n1. U S budget deficit\n2. balance of trade deficit\n3. war in Iraq\n\nAll of these are causing the dollar to drop. The rise in U S interest rates has prevented the drop from being more sever.
484812
Um...not to state the obvious, but...it's falling.  Markets do that from time to time, and it doesn't necessarily mean that there's anything significant going on.  It's just a sign that people are unhappy/uneasy/worried/ panicking/ taking out money for other things.  \n\nIf a little blip like this has you on Prozac, you'll be comatose before long.  You have to go into investing with an understanding that we'll go through ups and downs.  \n\nHaving said all that, I'm not convinced that this drop is entirely unwarranted.  As one previous answerer said, inflation is now becoming a legitimate worry.  Greenspan, with his magic wand, is gone.  And we're stuck with all this wild spending our government is doing (and not paying for). We're wondering how it could possibly NOT be inflationary.  (Secret hint: it can't.)\n\nSo, armed with that info, what should you do?\n\nPersonally, I've been keen on investing outside the U.S. for some time now.  And today, with overseas markets falling harder than ours, this may be an opportunity to do some switching.  Of course, if the U.S. dollar falls, we'll probably buy less imports from them, but I doubt if that will plunge the world into recession.  We're big, but not that big.\n\nLonger term, I suggest you vote for politicians that understand fiscal responsibility.  (Secret hint: neither of the major candidates in the last election!)\n\nHope you can hold on through this difficult time.
210247
1. Because they are a stong alley of the US and don't want to devalue the Dollar. \n2. Because they do not want to lower the value of their own currency.
480090
It is "too many dollars chasing too few goods".  Prices go up, but the value of the currency drops.  The purchasing power of the dollar declines.
606751
When interest rates go up, the economy tends to slow down and consumption with it the sales would likely go down.  The opposite happens with interest rates going down.\n\nWhen a currency gains value with respect to other currencies, it's cheaper to buy goods abroad, so the sales for the local good would go down.  If the currency loses value, the opposite happens.\n\nThere might be exceptions with mandatory goods like bread or Giffen goods.
175598
United States Dollars
624553
There is a trade imbalance that occurs.  A dollar appreciating against the yen shows that more money is coming into the USA than is going into China.  This means that the US dollar is getting stronger and has more value over the yen.  With the dollar appreciating, money will leave China and go to the US due to its strong currency value.  The money leaving China's economy causes the yen to depreciate and lose value against the dollar
520928
the world is headed for a crisis- gold has an established history of being valuable in and of itself, so people switch from currency to gold if they feel that the currencies are unstable. it also means that people who understand market forces are seeing "other than hard value" commodities are a very high risk as they are "over" valued- and can't stay that way- also, the total debt of the US is staggering- and therefore what is there to back up the dollar? it's value is entirely theoretical- and won't stand in a crunch- so, buy gold, silver- have something on hand with real value.
326796
The amount of money in circulation has nothing to do with the price of Gold or Silver. The dollar is not tied to either commodity. The dollar floats and is only tied to the "good will" of the US Government.
38468
The open market perceived value of the currency and the economies that they represent.  More nations and companies do business in dollars (US) than in pesos (i assume Mexican).  The need for dollars drives up its value where a glut in a currency like the peso will drive its perceived as well as inherent value down.
1020681
More sellers than buyers is the absolute correct answer.  Why it's down right now has to do with fear--fear that inflation has reared its ugly head in the US economy and is as yet unchecked.  \nThe markets run on two emotions:  Fear and greed.  Today it was fear that dominated.