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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