1. Foreign Exchange Rates
The value of the dollar has weakened against various foreign currencies in recent years.
Looking at four major currencies, one can observe the deterioration:
Japanese yen: The number of yen obtained per dollar has steadily declined from over
130 to the dollar in 2002 to approximately 82 to the dollar recently.
Swiss Franc: The number of Swiss Francs per dollar was recently .96, down from over
1.75 to the dollar in 2000.
Euro: The dollar cost of a Euro has fluctuated in recent years, but overall the cost has
been up, with the dollar cost of a Euro at $1.39 in October, up from the 85 to 90 cents
range in 2000.
Brazilian Real: The Real has been subject to substantial fluctuation, but overall has
gained in value relative to the dollar. The Real was valued in October at 1.68 to the
dollar, having gained value from 3.6 to the dollar in 2002.
Although exchange rates clearly fluctuate, the trend in value for the U.S. dollar has been
down. Given the Federal Reserve’s decision on quantitative easing by $600 Billion, it will
be interesting to see the impact on the dollar. Clearly a lower dollar has favorable trade
implications, but given that the dollar is the major reserve currency there is clearly
downside as well as upside potential if there is a significant change in valuations.
Produced by NAR Research
November 11, 2010

2. Produced by NAR Research
Foreign Exchange Rates