US dollar has experienced a weakening trend against the Euro since the end of 2006. Why?

Question

Do any of you know what triggered this trend? This is a thing we've been debating over with some friends. I would rather appreciate any well-founded and fast replies. Thx!

Answer 1

US dollar actually started to weaken at the beginning of the Bush administration.  It was a consciencious move.  Cheap US goods keep jobs, generate more tax income.  US presently exports 54% of all manufactured goods.  Unemployment rates in Europe are double that of US.  Interest rates account for much of the devaluation, along with inflation, which is controlled by interest rates.  Money invested in Europe and Asia has also caused to sink the US dollar.  US dollar just started strengthening two weeks ago.  Check out UUP (stock symbol) for strenght of dollar.

Answer 2

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