For the past few months the US dollar has been falling to several currencies including the Japanese Yen (114.600). Currently the USD is at a 7 month low to the Euro (0.807087) and a 3 month low to the Yen. The fall is coming from the two year end of interest rates from the Federal Reserve and the way China under cuts their currency.

This fall is pushing central banks to diversify their currency reserves from the USD.

The USD failed to move due to unsustainability of the U.S. trade deficit and as the Federal Reserve nears the end of its two-year interest rate raise. Has recently contributed to the falling dollar against many currencies.

The US and other countries are putting pressure on China to bring the value of the Yuan (8.01650) higher then it currently is. Many countries fell that China under values their currency to get more of their goods out to the world and from this it is creating a unfair trade for Chinese exports. This is something that the US wants resolved quickly and that may be reason why the Federal Reserve stop interest rates.

Will the falling dollar hurt the stocks? According to many no it won’t, but we will have to wait and see how that turns out.