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Dollar Firms Ahead of FOMC Meeting and Other Top Forex

The dollar was trading higher against most of its major rivals on Tuesday as traders eye the Fed’s rate statement and press conference on Wednesday amid uncertainty over the bank’s next move.Official data released Tuesday was mixed and largely ignored by traders who are more concerned by what the Fed has to say. U.S. consumer prices rose in line with expectations in May and consumer price inflation rose 1.4% from…
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The U.S. Dollar: Too Much of a Good Thing?

The U.S. dollar really is everyone’s problem. There are more dollars in circulation worldwide than any other currency – perhaps more than all other currencies combined as a full two-thirds of the rest of the world’s foreign reserves are denominated in the U.S. dollar. It’s also true that two-thirds of all dollars circulate outside of the United States. They have long been the choice of exchange on the world’s black markets. The reason is because they are so recognizable and accepted everywhere e…
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stuff_trader avatar

The problem with such a ‘solution’ is that the problem wouldn’t go away by simply erasing zeros on the currency or introducing a new name for the dollar. The inflation dynamic would still be present if no other action were taken in conjunction with such action.

dynamic_life avatar

This would make interest rates rise, collapse demand for new offerings, and make dollars return to the U.S., thus stoking domestic inflation.

jalil_naftarov avatar

The U.S. dollar really is everyone’s problem.

lada_stanley avatar

maybe

ivan_ohlobistin avatar

A failure of the U.S. dollar would mean that, at a minimum, the cost of everything, but especially anything we import, would rise dramatically. In a worst case scenario, the dollar would not be accepted in any quantity for goods or services, either domestic or foreign.

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