Wednesday, May 13, 2009

Trade Weighted Dollar Dropping (Graph)

You may be wondering why I put this chart up.

When the trade weighted value of the dollar drops the price we pay for imported goods goes up.

This helps explain why oil and commodity prices are now surging. When you look at this chart it might not seem like the current drop is severe. However, the trade weighted exchange value of the dollar has dropped about 4 percent in the last 45 days.

Take a look at how this is effecting oil, commodity prices, and interest rates.

We will keep you posted on this one.

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