Fluctuation of Greenback
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Recently, the US dollar is declining sharply. On the contrary, the Canadian dollar roars to 75 cents US as well as euro, climbs to 1.1827 US dollar. The US dollar began to slide in the early 2002 when Argentina defaulted on its debt.
The reasons for the weak dollar
Firstly, the stagnant economy in the United States decides the weak dollar. In fact, the overvalued dollar should be responsible for todays sluggish economy in the US. Since 1995, foreign investors had seen the US as a 'safe haven' in a turbulent world. In the mid-1997, Asian financial crisis caused the massive inflow of capital into the US from the rest of the world. Between 1995 and 2001 the real value of the dollar rose 41% against a broader range of currencies. However, the ever rising dollar exacerbated the US trade deficit, which rose from around $200 billion in the mid-1990s to over $500 billion in 2002...