Why is the USD going down?

Question

Why is the USD going down?

Answer 1

It's not so much that the Mighty US Dollar is going down, it's more a case of other currencies, UK Pound for example, going up in value.

Look at it like this.  A cheap dollar makes buying abroad an expensive business.  This then encourages US businesses to buy at home and this in turn helps cut the imports - well that's the theory anyway.

The problems only becomes noticeable when an American goes on holiday abroad, say to UK where he needs two dollars to buy one English pound.

Don't worry, this is not a permanent problem.  It will go away, but it just takes time.

Answer 2

GIANT DEFICIT!!!!!!!!!!