Dollar index hit a ten month low on Friday after bottoming out to combat global commodity and stock markets fell. New York crude oil, copper and other commodities traded in the electronic disk today fell more than 1%, the Asia Pacific stock market is generally lower.This is a news on Sina today, but I have been unable to identify the specific relationship between the dollar and who can tell me, the best point in detail, thank you
The falling dollar refers to the dollar for non US currencies fell, because more commodities denominated in dollars, so the commodity holders see dollars for other currencies fell, will require their asset losses increase transaction price has been up for $caused decline, so the dollar would lead to higher commodity prices, commodity the price rises, which means holding commodities will enhance the performance of listed companies, and jointly improve the value of the company's stock, share prices rose again, the dollar will lead to dollar holders eager to put his own dollars into shares, real estate and other assets, will aggravate the dollar denominated the stock and real estate prices,
Finally, the dollar's decline is often US dollar circulation caused by the excessive dollar, big circulation means that enterprises can sell more goods to create better benefits, can also be easier for new investment, so as to stimulate the economy, and even lead to inflation, and ultimately produces the power to attract funds to buy stocks, the results still caused rose.In turn, the rise in the dollar will lead to the opposite result, the outflow of capital assets will return to the dollar savings account, resulting in asset prices fell.
According to the principle of equivalent exchange, the dollar is also a commodity, but the world is a lot of things are denominated in dollars, such as commodities, especially oil.However, the dollar is not the only currency in the world, there are other important currencies, such as the pound, the euro, the Canadian dollar, the Australian dollar, the yen, the ruble and the yuan, etc..
