Capitol Hill Blue Forums Political Issues Finance, the economy & Economics The resilient dollar

I'm not debating that the dollar has seen better days.

What I'm saying, and using the Economist as a source, is that the Dollar is still the currency of choice for reserves and while the Euro has given some alternative options to investors, it has not yet replaced the Dollar.

For the past 3 years the European central banks have kept their interest rates significantly higher than the FED. That has played a huge role in the dollar getting weaker and weaker each year.

However, there is no denying that today, all economies are affected by the credit crunch and investors are running to the dollar dominated securities as reflected by the gains the dollar has made the past 2 months.