The Aussie dollar has fallen a bit

[expatriate]

so last night on the news here in Oz, the "experts" were all claiming that it was falling because "the American economy is strengthening and the American dollar is strengthening as well".

Oh really? Not from what I can suss out. Seems to me the American economy is continuing to tank.

Anyone finance savvy who wants to venture a guess on this one? Are the Aussie finance newscasters just babbling?

[enid602]

1. dollar

The USD has been steadily rising the last couple of months vis a vis the euro (from $1.38 to $1.12 to the euro) because of Europe's failure to adopt a constitution. I suspect that other currencies have fallen against the dollar as a result. As far as I know, the US' twin deficits (trade and government spending) continue unabated, so I don't think the long-term trend for the dollar is positive.