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$¥€ asked in Business & FinanceInvesting · 1 decade ago

Do you think the U.S dollar will ever rebound?

Just wondering what you guys think?

10 Answers

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  • 1 decade ago
    Favorite Answer

    Depends on what you mean by rebound. If you mean seeing gasoline at $1.50/gal again, probably not. Our economy is fundamentally tied to energy consumption and because we are now competing with rising nations like India and China for oil it is likely that our economy will continue to decline for some time.

    We need to reinvest in education, and energy independence.

  • 1 decade ago

    I'm no expert but I think that it will eventually but we've got a ways to go. There might be some tough times for the next year or two until we can get things sorted out. However if the Fed keeps cutting interest rates it will only keep going lower. This may sound cold but I think they need to leave interest rates alone and just let the economy go into recession so we can make the adjustments necessary.

  • 1 decade ago

    Only miracles will do. Japan as the largest overseas holder of U.S. treasuries are now paying for Oil in Yen. Central banks in South Korea, China, Taiwan, Russia, Syria and Italy have announced plans to reduce their dollar holdings. If more and more nations are ceasing to use dollars to conduct international trade how can the U.S. economy survive?

    Since the 1944 Bretton Woods Agreement, the U.S. dollar has been the world's primary reserve currency. As such, the dollar has been used by majority of nations to pay for crude oil. The resulting massive demand for dollar has allowed the U.S. to accumulate trade deficits and fiscal debts without experiencing the negative economic impacts that such imbalances normally cause.

    Source(s): The Philadelphia Trumpet
  • 1 decade ago

    Longer-term the US dollar in a permament state of decline although you will always have short-term periods of strength. The US governement needs a declining dollar so that they can pay back all the debt they owe to other countries with less valuable dollars.

  • 1 decade ago

    yes, when we get a new president and come out of the recession, america has gone into recessions before and managed to come out strong, its just going to take time. when u think about it this question is too not specific because ever rebound could mean will it get stronger in the next thousands of years, meaning yes, there is a very high chance that the dollar will rebound before the end of the world or something

  • 1 decade ago

    Nothing goes up forever and nothing goes down forever. Eventually it will rise again. In the meantime our low dollar makes our products cheaper around the world which will help our economy from bottoming out.

  • Anonymous
    1 decade ago

    When USA pays off its huge foreign debts. Then the US dollar will surely recover.

    But as long as those debts keep getting bigger and bigger, then recovery for the dollar will be unlikely.

  • 1 decade ago

    off the rim of my garbage bin.

  • 1 decade ago

    always has in the past.....have to get past theoil thing first..........

  • 1 decade ago

    no i doubt it

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