The fall of the dollar benefits the U.S.

Foreign Exchange Market Finansy18-07-2007 In the next two or three years the dollar will continue to decline, but will not collapse. Weak national currency is beneficial to the U.S., as stimulating exports and attracting foreign tourists. Nariman Behravesh - chief economist at research firm Global Insight - in an interview Pravde.Ru "cited three main reasons for the current dollar decline. Thus, the U.S. dollar today is losing its position. Why is that? To date, there are three main reasons. The most important - is a huge current account deficit the U.S. budget. The second reason is that in the U.S. there is now a very low economic growth in comparison with other countries. Third, today's currency market is almost no one believes that soon the U.S. Federal Reserve will raise interest rates, while other central banks promised to such an increase. Who benefits from falling dollar? It is advantageous, above all, the United States itself. A weak dollar stimulates an increase in exports of American goods. Can we soon expect a fall of the dollar?