Show I TAo ASK I ABOUT THE DOLLAR DECLINE What causes a currency to decline In To understand why the dollar is falling in one must first hat deter- J mines the value of the Just as supply and 0 determine the of c a so the demand for and supply of dollars determine U its value with respect to other The demand for dollars depends on the amount of dollars people want to either to buy goods or to hold as an The supply is determined by the amount of dollars in which is determined by the Federal Reserve If there are more dollars in circulation than people want to buy wi and have attributed the fall dollar to trade hJ by imported oil There are two problems with this countries like Switzerland and import all of their oil and their currencies have in creased in throughout certain coun- tries have run large trade had their currencies remain stable and had grow ing But in such the attractiveness of the economy caused increased invest- ment by foreigners and the dollars flowing out of the country for imports were matched by foreign investment flowing |