Quote:
Originally Posted by Ashrafieh_101  The USD is depreciating because of the state of the US economy and because the Fed has lowered interest rates. The ECB on the other hand has started raising interest rates. This forces investors to sell USD to buy the Euro for example where they can earn a higher return.
Regarding oil, it is priced in USD. This is one reason it has gone up so much in USD terms. If you look at it in other currencies, it hasn't gone up as much. Same with gold and other commodities. That's because most commodities are priced in USD. |
i got the 1st point, thx for ur answer.
as for oil prices, it means that only people in the USA, and countries like Lebanon were the exchange rate is fixed with respect to the US$ that will be hit by higher oil prices most. but in London, the eurozone, or Hong Kong, it shouldn't have that much of an effect, according to what u're saying? what's wrong in this argument since everybody seems hurt? thx
4th July 2008
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