The dollar keeps biting the dust to the euro and it's going on... I'm not very much onto economy but if this keeps going on what could be the effects, global-scale?
well, technically the rise of Euro could, in the long run, provoke a total change in global economy. Euro will probably become the international reference (the $ is the actual reference). ATM, loads of investors are investing in euro: it seems a secure value contrary to the dollar which sees its value fall daily!
The countries thatb export petrol are considering changing their exchange currency from Us $ to Euro. For exapmle Venezuela and Iran want to do it this year.
And thus, seeing as the Euro gets stronger by the day, people keep investing on it and so the dollar value keeps falling. This might soon lead to a crisis.
Most of the dollar's worth and holding are by investors - people who trade currency. With the dollar's decline, it could stand to reason that investors would no longer find the dollar to be suitable to hold onto, and once that currency is released the value of the dollar will plummet (relative to where it is now). That's why the Fed is doing what it can and the government is trying to step in - in order to try to at least maintain the dollar's worth. In the meantime, the European economy is catching up (or down, as the case may be) to America's as many European countries are starting to experience their own sub-prime lending crises, which many analysts are saying is just a symptom of a larger problem.
