Any Explanation Why the US Dollars Has Gone Down?

The green bucks is slowly losing its value - My son is earning dollars, so I am a bit concerned about its downward trend against our currency...I'd just want to know the reason why this is so, and if there is going to be an improvement to it...
@psyche49f (2511)
Philippines
October 22, 2007 5:17am CST
Lately, I have been dismayed because the value of the US dollar has dramatically gone down. Last week it was around 45 pesos to a dollar, now I guess it has dipped down even more. I wonder what has happened to the US economy...I hope someone could explain the reason for this downward trend, and whether there is a promise of a stronger dollar value in the future. Of course I wouldn't want it to be so strong so as to overtake our currency drastically. At least a little improvement would be a welcome development for dollar earners...
5 people like this
18 responses
• Philippines
23 Oct 07
I'm also kinda upset, because dollar earners in the Philippines are the most affected.
1 person likes this
• Philippines
23 Oct 07
but that will also mean something good for the rest of the filipinos who are not dollar earners. and it will be good for our country.
@wisedragon (2330)
• Philippines
22 Oct 07
dollar - the almighty dollar not so mighty anymore
There are several reasons: 1. Continued increase of Filipino workers deployed abroad who then send remittances back home. 2. Higher positions being landed by Filipinos abroad (i.e. nursing as opposed to domestic helper). Hence, higher remittances. 3. Booming outsourcing business in the Philippines. These are dollar-earning businesses that then need to convert into pesos in order to pay for their operating expenses. 4. Foreign investors. The Philippine stock market has been robust the last few years thanks to the entry of foreign investors who need to convert into pesos in order to buy local stocks.
1 person likes this
• Philippines
26 Oct 07
Mabuhay Kabayan! Definetely your reasons are correct. 'ika nga, korek ka diyan. may i then ask for your opinion why are the prices of our basic commodities skyrocketing (for instance the pan de sal. the increase is .50centavos per piece!)in spite of the strenghtening pesos? Is the increase of an oil barrel to an all-time-high of $100 in the international market be the reason? What other reasons can you think of? Ayoko nang mag-isip. (hehehe). Maraming Salamat.
• Canada
4 Mar 08
There are three main reasons why the dollar is going down in the US 1. The Failure of the Automative and trade industries... The grossly overgrown unions with there employees making $20-40 per hour in what was formerly a profit rich industry. But now Americans and Canadians alike have 1-3 cars per household there is no market for it and at the price of a new car not many people could afford one. This was the first blow to the economy in the Mid 1990's 2. War ... war is an expensive endeavor that comes right out of the tax payers pocket. The tax payers supported the war so wrong or right is irrelevant it is still money not in the treasury and is not being recuperated by the government to back the currency. 3. Outsourcing, a lot of companies are outsourcing remedial production and service jobs to other countries like India, China and Canada which is a three fold negative. First the money which American customers are paying is going to that country boosting there economy instead of the American economy. Second that makes less jobs to lower the unemployment in America leading to more money from the government going to unemployment. Finally that money going to outsourcers and foriegn taxes for doing buisness in those countries is putting more money for that countries endeavors and there government to back there currency. So in conclusion it is absolutly clear that the American Dollar is falling because of the country in itself is begining to run backword and the American economy is starting to work itself right out of the Job!
@joshespi (20)
• Philippines
23 Oct 07
Could it be that our economy is getting better? Possible right? why get dismayed?
1 person likes this
@barehugs (8985)
• Canada
22 Oct 07
If you were an American you would understand! The American dollar has gone down because George W Bush has made, and is still making, Bad Decisions. I'm Canadian and I'm hoping that he is stopped before he brings the Whole of North America to Its Knees! Come on! Hillery Clinton!
• India
22 Oct 07
to be honest i hav no idea about y or how the value of currencies fluctuate....
1 person likes this
22 Oct 07
Fluctuations in world economics is playing havoc with exchange rates at the moment, as the markets slow down so the currency markets react. Property prices, share prices etc., all will be affected now.
1 person likes this
@skostov (39)
• United States
22 Oct 07
I think that the dollar will continue to fall, especially if the FED decreases the interest rate again, which they will probably do. Many countries that hold their reserves in dollars are starting to consider changing them in euros, which may be a huge blow for the value of the dollar.
1 person likes this
@gabesmom (1246)
• United States
22 Oct 07
The US economy has not been as good as it was a few years ago. Most Americans are in debt and businesses can not create enough jobs for the unemployed. The housing market is going downhill. Thus, the Federal Reserve had to step in to cut interest rates to prevent a recession. This caused the dip in the value of the US dollar compared to other currencies. This is part of the economic cycle. Cutting the interest rates should stimulate the export business and the US dollar should redeem at least some of its value.
1 person likes this
@subha12 (18452)
• India
4 Mar 08
I think US economy is not doing as well as it used to be.it has become a bit weaker than before. its not only with peso but with indian rupee as well.Rupee is more stronger now related to dollar than before.
• Philippines
15 Nov 07
Since dollar is the intrnational currency adopted by the philippines, anything that will happen to the Us economy will surely have a bearing on Philippine economy. And since the economy of the US is not performing that well compared to previous years like particularly in the time of bill clinton's administration, us currency will really have depreciate thus having a much stronger peso. There will be a possibilty that the dollar can still recover but just like what I've said the Us economy is not performing that well. It would not be beneficial for people to hold on to their dollars these days. I am projecting that by the end of the year peso will surge an all time high value range of 42 to 43 pesos against one dollar due to incoming remmitances from filipino workers abroad. So i suggest that if you have dollars now, you might as well exchange it for peso.
• Philippines
15 Nov 07
Since dollar is the intrnational currency adopted by the philippines, anything that will happen to the Us economy will surely have a bearing on Philippine economy. And since the economy of the US is not performing that well compared to previous years like particularly in the time of bill clinton's administration, us currency will really have depreciate thus having a much stronger peso. There will be a possibilty that the dollar can still recover but just like what I've said the Us economy is not performing that well. It would not be beneficial for people to hold on to their dollars these days. I am projecting that by the end of the year peso will surge an all time high value range of 42 to 43 pesos against one dollar due to incoming remmitances from filipino workers abroad. So i suggest that if you have dollars now, you might as well exchange it for peso.
• Philippines
15 Nov 07
Since dollar is the intrnational currency adopted by the philippines, anything that will happen to the Us economy will surely have a bearing on Philippine economy. And since the economy of the US is not performing that well compared to previous years like particularly in the time of bill clinton's administration, us currency will really have depreciate thus having a much stronger peso. There will be a possibilty that the dollar can still recover but just like what I've said the Us economy is not performing that well. It would not be beneficial for people to hold on to their dollars these days. I am projecting that by the end of the year peso will surge an all time high value range of 42 to 43 pesos against one dollar due to incoming remmitances from filipino workers abroad. So i suggest that if you have dollars now, you might as well exchange it for peso.
@spoiled311 (5502)
• Philippines
23 Oct 07
hi psyche! i am sorry that I don't have any explanation why the peso is performing very well. but i am happy because that means that our peso is becoming stronger. if the dollar will continue to increase, what will happen to the philippines? this is good news to the philippines because that means that the economy is improving. i think one reason is also because of the dollar earners. the good thing is, eventually, people don't have to go out of the philippines to earn because we are already earning well here. that's the main reason that people go out anyway--to earn big bucks. but if the peso is gaining, there's no reason now to leave family behind just to pursue greener bucks. :-)
@Zelmarq (11671)
• Cebu City, Philippines
23 Oct 07
This is a good sign for all of us Filipinos and a hope for those who are outside the country coz this means an improvement in the economy as a whole. One reason, is the remittance of our overseas workers who earn dollars abraod. They may experience homesickness there and suffer but they are doing something for our country. They are our living heroes. Another reason is the number of investors that have scome into our country and the call centers are one of the many of them, they are not only providing jobs but they are also giving a lift higher for our economy.
@plumwish07 (4059)
• Indonesia
23 Oct 07
i dont think it will affect US Economy immediately in global coz i think it will go on temporary. as like we know, US is kind big giant country and super power country which determine global economic and they can recovery their economic growth fast than another country especially development country. lets se in case when US currency falling down with Japannese currency. Thats true, it shocked market user but its not long time in remain condition. the US currency become stabil again after few times.
@plumwish07 (4059)
• Indonesia
23 Oct 07
i dont think it will affect US Economy immediately in global coz i think it will go on temporary. as like we know, US is kind big giant country and super power country which determine global economic and they can recovery their economic growth fast than another country especially development country. lets se in case when US currency falling down with Japannese currency. Thats true, it shocked market user but its not long time in remain condition. the US currency become stabil again after few times.
• Philippines
23 Oct 07
The peso has gained strength and may continue to do so due to the inflow of dollars into the country, fostering liquidity and exchange. This is brought about by workers sending dollars into the country and by online earners like you who get paid in dollars (even euros). The ease by which you get paid in foreign currency these days (thanks to PayPal, Moneybookers, and Xoom)allows more money "dollars" to circulate, as there is less need to keep them in the cashbox or the bank with a rise in the incentives to spend due the ease of earning them. You can expect people to move into dealing with the euro more as this has more value and is beginning to be as popular as the dollar as a common currency for international trade. There will always be balancing forces that draw the trends in the world economy and local economies and nothing is constant. Thus, you will have to learn to adjust to make the most of the changes. For instance, exporters in the Philippines will have some big decisions to make as their profits grow considerably less. Finding solutions to the problems, like mechanization and hiring cheaper labor or procuring less-value materials, ultimately mean the growth of one sector of the economy, which may, alas, not favor another.