Why do we have a weak dollar?

Filed under: Major movement, International markets, Products and services, Management, Competitive strategy, India, China, Market matters, Money and Finance Today, Japan, Commodities, Oil, DJIA

The stock market is rallying. Commodities are on a tear. Yet the dollar is falling. Why?

There are several reasons for the drop in the dollar, but the most obvious and simple answer is that investors around the world are selling dollars and using the money to buy stocks and commodities, particularly oil and gold.

Last week India announced that it had bought 200 tons of gold from the International Monetary Fund (IMF.) At an average of say $1000.00 per ounce, the transaction amounted to about $7 trillion dollars. Chances are that India sold dollars from their sovereign fund to buy the gold.

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Why do we have a weak dollar? originally appeared on BloggingStocks on Tue, 10 Nov 2009 17:45:00 EST. Please see our terms for use of feeds.

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