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  • Category: Miscellaneous

    If every currency falls with a world's major event then which currency gains?

    Nowadays, almost all the currencies are compared with US dollar. When a major catastrophic event happens in the world, currencies of each and every country falls down as compared to US dollar. Does that mean US dollar appreciates in value in such case? If every country is affected with the world event then how can US escape from it? Its currency value should also depreciate. Knowledgeable members, please elucidate me in this regard.
  • #568815
    @ BHubanesawr Rao.
    currency appreciation or depreciation depend upon the economy, import, export, foreign reserve etc.
    Suppose USA is growing economically so it currency will go up against most of country's currency but we can not say against all currencies. Because might be compared with particular country economy USA might not growing ,so just check out the below attached image you will understated.
    Here USA is growing against euro, GBP,CAD, CHF etc where is falling against JPY.
    SO current scenario Japanese yen is stronger than USA dollar.

    Delete Attachment

  • #568819
    Who said that if currencies of various countries plunges, US dollar would enjoy the reputation and appreciates. US economy is heavily depended on other partner countries through whom it has business and trade pacts and thus US dollar will face the same crunch. However we have seen in the past that India was withstanding the global recession and we proved to the world that we can manage and surge ahead in spite of other countries having become pauper. It all depends on how the country is managing the daily affairs, how the confidence of the business class is being kept and how the country facilitates exports to the needy company.
    K Mohan
    I consider myself as the learner everyday

  • #568823
    I would also like to post my response as a common man with some general knowledge, without actually knowing the intricacies of the economics.
    All international cooperation is nothing, but trade only. The eminent world leaders of the developed countries take policy decisions with a view to develop their respective countries. As the saying goes, money attracts money. USA being a super economic power, always has an edge over others. They search for consumers world wide. Countries like China and India have more consumers than the European countries.
    I think the decisions like Brexit should not have been taken through a referendum. I don't think that all citizens of UK fully understand the complexities involved in a major decision like Brexit.
    EU as an entity was/is a formidable force. There will be fluctuations temporarily only, and the things will get settled in due course. The different countries of the world will re-negotiate their equations to maintain equilibrium.
    The US dollar will rule the roost as always.

    Let us encourage each other in sharing knowledge.

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