currency value in international markets is relative, so if the USD is falling slower than another currency, it is in effect strengthening.
the dollar is getting stronger because demand for the dollar is rising. the absolute safest investment for decades has been US government treasuries, so with markets going crazy more pension funds etc. are most likely looking to buy T bills.
i would also imagine that the 700 billion bailout and the recent announcement that the Feds will buy company IOUs directly is going to be funded by treasury bills, which in part will be sold to foreigners.
people think the US economy is in deep trouble, but even with their long-term unsustainable trade deficits and deficit spending, it still remains the most dynamic economy in the west. it recovered far quicker than Europe with the tech bubble burst, and it will most likely recover quicker this time.
currency value in international markets is relative, so if the USD is falling slower than another currency, it is in effect strengthening.
the dollar is getting stronger because demand for the dollar is rising. the absolute safest investment for decades has been US government treasuries, so with markets going crazy more pension funds etc. are most likely looking to buy T bills.
i would also imagine that the 700 billion bailout and the recent announcement that the Feds will buy company IOUs directly is going to be funded by treasury bills, which in part will be sold to foreigners.
people think the US economy is in deep trouble, but even with their long-term unsustainable trade deficits and deficit spending, it still remains the most dynamic economy in the west. it recovered far quicker than Europe with the tech bubble burst, and it will most likely recover quicker this time.