Saturday, April 28, 2012

Dollar Still Unsteady


The dollar fell yet again this past week amid the news of a smaller-than-expected increase in new jobs in the U.S. The Wall Street Journal reports that “the U.S. economy added a scant 120,000 jobs in March—far less than most Wall Street economists were expecting.”


The dollar’s value has been unsteady in recent years due to the struggling global economy and widespread geopolitical instability. It continues to be well below the value of the Euro and Yen, with no real increase in value expected.

 

The dollar has not always been so easily affected. Before the Gold Standard was abandoned in the 1970s, United States currency was backed by gold, making it more stable and a stronger player in the global marketplace. With the current fiat money system, politics and the economy are largely responsible for determining the value of the dollar.

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