What will happen to USD value from now on?

Times are confusing, as there are both too many "hyped" up sentiments regarding the USD value against other major currencies nowadays. Will it experience further devaluation from now onwards? Or will it revalue instead? Would any economists/traders care to lighten all of us?|||USD devaluated ? that's a news.


Not just hype...but rumours are abound in world markets .....initiated by gamblers who create panic and make huge money from it.


Officially no plans for USD but we are waiting for China to upgrade yuan which it wouldn't. Eurozone being equally bad , there is no panic on euro-USD front.|||items that are traded in public markets are generally valued at the amount that the average investor or trader believes reflects all the known information available. If there is a sentiment toward an increase or decrease in the value going forward, you look at the futures market for that item to see what a contract to sell that product later is going for today.





Right now the European Debt situation seems to be one of the major issues affecting the dollar.





But overall, the value of the dollar is what the world currency market believes it is worth and unless you have information the currency traders don't have, or a model that you believe is better at predicting future value than the traders have, you will be wrong about the direction of the dollar about 50% of the time on average. :)|||I suspect the US dollar will tend to strengthen over time. For two reasons. A short-term reason is the likelihood of financial disaster in Europe. At times like that global investors move money to the US for safety, and that means converting to dollars, which increases demand for the dollar. If Europe is struck by a financial crisis, which is fairly likely, we may see a strong sudden strengthening of the dollar.





More longer term, believe it or not the US seems to be trending to smaller trade deficits, due largely to increased domestic oil production, and less oil imports (as well as the generally poor global economy). Also what oil we do import has been tending to get cheaper. This fact tends to strengthen the dollar, because it means we are transferring fewer dollars into foreign hands in trade for imports -- that affects supply, meanwhile there is always strong demand for the dollar overseas. In fact there has lately been a shortage of dollars among European banks, who've had to borrow dollars from the US federal reserve.





People who don't actually pay attention to exchange rates seem to think the dollar has only been weakening for a long time. That's not true: the dollar has generally been getting stronger since 2008.