The Mudcat Café TM
Thread #105787 Message #2474205
Posted By: Bee-dubya-ell
23-Oct-08 - 06:42 PM
Thread Name: BS: Low US dollar, high Canadian dollar...
Subject: RE: BS: Low US dollar, high Canadian dollar...
It's expected that the current strength of the US dollar relative to other currencies will be short-lived. The dollar's rise in value is largely a result of heavy purchasing of US treasury bonds by foreign investors. The US economy may be as deeply in the toilet as any other country's, but the US government is not going to go bankrupt. Its bonds are still a very safe, if low yield, place for investors to park their money until stock markets improve. When that happens, expect the dollar to go down in value again.