Digital News Report – The US dollar has declined against various currencies around the world over the past year. One year ago the dollar was riding at 1.24 Canadian dollars. Today the two currencies are even. That is a 20 percent decline in value.
The dollar has also declined against the Brazilian Real. According to our records, the dollar was sitting at 2.22 one year ago but dropped to 1.76. That is a decline of 20 percent (see chart below).
When compared to the Euro the dollar has not changed since one year ago. But it has declined 7.27 percent against the Yen.
Commodities are in high demand today and this could be the primary cause of the weak dollar. Demand for commodities, especially oil is increasing in India and China.
Some analysts believe that the Iraq and Afghanistan wars played a role.
The bailout of both domestic and international banks may have caused a decline in value. This may have played a role in the dollars decline against Canada which did not have to bailout their banks.
By: Tina Brown