# Dollar index is at a 12 month low



## BillS (May 30, 2011)

http://www.bloomberg.com/quote/DXY:CUR

The dollar index is the value of the dollar against a basket of other currencies. Not only is it at a 12 month low but it's also dropped about 38 cents so far today. It's at 79.10 at this moment.

The concern is that if the dollar index continues to drop it will cause foreign investors and foreign countries to lose confidence in the dollar. That means more dollars being dumped on the market and its value decreasing more. It could spiral out of control.

The dollar could bounce back. It dropped below 80 last October but bounced back. It's just that at some point it won't bounce back. It'll continue to drop. When that happens we'll see the purchasing power of the dollar erode and then ultimately collapse.

So, if nothing else, this is something to watch in the days ahead.


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## LincTex (Apr 1, 2011)

DOLLAR INDEX
http://www.marketwatch.com/investing/index/dxy

Pound nears $1.70; euro jumps against dollar
http://www.marketwatch.com/story/pound-nears-170-euro-jumps-against-dollar-2014-05-06

Dollar falls on strong euro zone data, positive U.S. signs fail to boost
http://www.reuters.com/article/2014/05/06/us-markets-forex-idUSBREA330R620140506

http://en.wikipedia.org/wiki/U.S._Dollar_Index


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## hiwall (Jun 15, 2012)

I agree 100% BillS. The dollar index is a simple and very important check we should all keep an eye on. I look at it daily. Some economists have predicted the dollar could drop with incredible speed (one or two days!) and this is a concern for me. A slower fall in value would give all of us time to do last minute things but a rapid fall could catch many people at a bad time. Best to keep an eye on this and other signs of the dollars strength.


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## Woody (Nov 11, 2008)

With major players already dropping the 'petrodollar' as THE medium of exchange, why would we expect anything else? I feel the only reason China has not dumped all its U. S. bonds is that it could lose a ton. It is selling off, but not enough to cause a panic.... yet. If you have been watching, which I know many of us have, China and others have been BUYING gold (which is not really a valuable thing according to the U. S.) which has been THE medium of exchange for centuries. The U. S. has been SELLING all its gold to these countries. We, meaning all of us poor folks in the U. S., can only rely on our beloved FED creating money, at interest, and having everyone else in the world believe it is actually worth anything. I do wear the tin foil hat but come on now... How long can we expect all countries in the world to believe that by creating pieces of paper to cover our interest payments, can we expect them to believe it is worth anything? The only thing we have to back our "federal reserve notes" is the 'full faith in our government' and our land and natural resources.


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