Why is the US Dollar so weak?

Question

Why is the US Dollar so weak?

Answer 1

Because people are leaving it for safe commodities like oil and gold.  This means that there are more dollars in circulation and reduces their value.  Also by the mere thought it will fall can cause it do be sold off.  A number of other factors influence it also like the economy and political situation.

Answer 2

The interest rate people get at the bank is below the inflation rate.  Which means that people who have money are loosing their purchasing power due to inflation.  And some of these people are trying to avoid these losses by changing their dollars into foreign currencies and buying gold and commodities such as oil and others.

Answer 3

Upon my opinion, US Gov has borrowed so much money from foreign countries last decades.. with trillion dollars. They used this money to invest in oil and gold and so on ...investments, also increase their reserves as well. If consider 5 or 10 percent interest rate but dollar value has been dropping more far than it , might to 30 to 40%. then who will benefit from this weak dollar? there also a minor damage to US imports but more gain in pay back loan.

regards,

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