Who manipulates global currencies?

Question

At these times of dramatic ups and downs of every world currency and particularly against the U$S dollar.

Is it a coordinated and predetermined way of manipulating the world economy by the main financial powers whoever they are?

Answer 1

theoretically, since currency value is a function of interest rates it is implausible that in the long run there is any actual manipulation. since econ is not a perfect science there is no real clear cut answer. but unlike stocks, commodities are contracts that promise a price in the near future date. so even if specualtion is occuring, it doesnt seem that it is prevelant becuase someone will eventually have to pay for it (ie the speculators by delivering the currency at the promised date). the reason the US $ is so weak is becuase our interest rate has been at record lows (lowering interest rate was greenspans way of getting us out of the weakness caused by  911 and the tech bouble). that, coupled with a weak economy is probably the best reason for the weakness. also, consider the near collapse of the financial sector...this could go on forever. i hope that i helped