By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - General Discussion - Exchange rates?

idk know how these work and i was just wondering something the U.S. is supposed to be going into a recession so why is the British pound and the Euro getting closer and closer to what the USD  is worth

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-102708.aspx

This article show the exchange rates at the side about a month ago the Pount was at like 1.7 to every one USD and Euro 1.5 to even 1 USD now is 1.5 to 1 and 1.2 to 1 why?

I was just wondering how all this stuff works lol



Proud Owner of  a Wii and Xbox 360 and a PS3(When I get the money)

Around the Network

Same thing is happening with the peso.

The thing is, inversionists and companies are not investing a lot of dollars, so there are less dollars circulating, and it becomes expensive because the low supply.



The UK economy is collapsing faster than cooling souffle. Our housing market has literally stopped dead, unemployment is rising, retail is suffering, our banks were close to collapse and had to be rescued and inflation is relatively high.......and it rained all day yesterday!

The lack of strength of our economy has lead to collapse in our currency (£). Investors don't want our money so the value of it falls.



People are spooked about the EU economy, even more so than the U.S. People haven't been that thrilled about the commodity markets either, like gold and oil. And investing in banks of many different countries is not a feasible solution either (like Iceland for instance, which is having a banking collapse).

In comparison, U.S. bonds look like a fairly good investment in comparison to most other options. It is essentially one of the safest money mattresses out there at the moment.



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

hmm i c so what is wosrse atm US economy or the rest of the world?



Proud Owner of  a Wii and Xbox 360 and a PS3(When I get the money)

Around the Network
Everstar said:
hmm i c so what is wosrse atm US economy or the rest of the world?

Japan has been bad for awhile.  China is doing alright, but without the US to support them their economy could tank overnight.  I don't really know that much about the EU's economy in general, but I haven't heard to many promising things.  In reality, the U.S. "controls" a lot of other markets (especially China and India and to a lesser degree the EU) because it sets a lot of trends and so much business simply travels through the U.S. 

Its all pretty bad, but the US is better than some places.  People are just flocking to the US bond markets because its safe at the moment.  The U.S. dollar is benefitting as a result, plus it has been artificially low for awhile.

 



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

akuma587 said:
Everstar said:
hmm i c so what is wosrse atm US economy or the rest of the world?

Japan has been bad for awhile.  China is doing alright, but without the US to support them their economy could tank overnight.  I don't really know that much about the EU's economy in general, but I haven't heard to many promising things.  In reality, the U.S. "controls" a lot of other markets (especially China and India and to a lesser degree the EU) because it sets a lot of trends and so much business simply travels through the U.S. 

Its all pretty bad, but the US is better than some places.  People are just flocking to the US bond markets because its safe at the moment.  The U.S. dollar is benefitting as a result, plus it has been artificially low for awhile.

 

 

 oh ok i think i get it now thanks =)



Proud Owner of  a Wii and Xbox 360 and a PS3(When I get the money)

The Australia dollar has gone from 98.5 US cents/dollar to 60.5 US cents/dollar in about 3 months. My understanding in this situation is that because Australia has a commodities driven market, fears of a recession mean demand for commodities drops and hence affects currency value. I would assume the same would go for other countries in a similar situation to Australia.

Anyone who knows more about this stuff, feel free to correct me.