Monday, September 29, 2008

What's Up With The Dollar?

Today the US stock market dropped 777 points, everyone says that the US economy is about to tank, so why the hell is the US dollar suddenly getting stronger against the dollar? It had dropped to 1.6 Brazilian Reis to the dollar and sat there for the longest time, yesterday it was 1.7 to the dollar, this morning it was 1.8, right now it is 1.9 to the dollar.

I don't know jack about economics, what is going on?

5 comments:

Mei said...

I second that! This is one point I don't understand.

A.L.R. said...

Errr...uuhhh...what!?

Pedra said...

Yeah, I don't understand it either. I guess that is why you have to study economics in college to really know what the hell is going on. But it's a good thing for you since your job is from the US. Bad for me since I am paid in Reais!

-Cheryl

Sarah said...

I was there beginning in Aug. 1 (1.6 R to the dollar) and started hearing all that talk about the crashing economy back home but was also super confused why the value of the dollar kept going up like crazy until it was at a high of 2.6 to the dollar when I left at the end of Nov. Now I see that it has gone down to about 2.3, but that is still great! I was in Salvador also and just ran across your blog while looking for a way to return and work long-term. I guess the best way is to get married...that's what Brazilians kept telling me. I love and miss Salvador like crazy!

markuza said...

Hi Sarah,

Yes, it has been a relief for me to have the dollar be a bit stronger, I fully expected it to drop back down but luckily that hasn't happened yet. I heard one report on NPR stating that the dollar had gotten undervalued there at the end so this may be partly the result of a readjustment. Also I heard it was because the Brazilian government bought a ton of dollars to help stabilize the Real.

Thinking of coming back to Brazil? Well... you can get married... or you can just have a kid :) that's good for a permanent visa too!