What is going on with the extreme weakness in the dollar (at a 19-month low)? What is causing the $USD to be so weak? From Chapter 21, which is entitled International Financial Management, we can make an inference as to the recent $USD weakness. Read pages 603-611 that provide insight for each of the following exchange rate determinates of the $USD: Income and taste, Changes in relative interest rates, Changes in relative price levels, Changes in fiscal and monetary policies, Changes in Balance of Payments, and Other Factors such as Oil Prices and SOX or SarbOX Act.
For Tuesday, October 28, be ready to discuss the causes for the $USD weakness.
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