The trade-weighted dollar is still a little off its 37-year peak, but still strong compared to most of that time period, as shown in the chart below (the data for which was borrowed from the St. Louis Fed).
Click to enlarge:
A lot of people had been upset that China had their currency pegged to the dollar, but as I was browsing around the currency charts, I saw that they are continuing to ease up on it. Also during that currency-browsing session, I found another curiosity: an entire continent pegged to the dollar, and threatening to keep it pegged all the way through 2012. It might be time for Congress to put up some trade barriers if these folks refuse to play fair. To see their currency, and their pledge to keep it pegged, click on the following thumbnail:
I am all for it. I will boycott the next dozen or so penguin movies that come out this year.
Posted by: patrick | 27 June 2007 at 13:50
BTW, I keep reading economists saying that the appreciation of the yuan will not affect their trade balance much....uhhhh, then why are my suppliers in China griping non-stop about it?
Had the same thing happen before with Taiwan when their dollar appreciated.
Posted by: Aaron | 27 June 2007 at 22:38
Float the yuan and mess up their economy, or fix to the $ and import OUR inflation. Great options to pick from.
Posted by: Russ | 28 June 2007 at 07:33
I always enjoy your blog; I lurk every few weeks. Is there any way that your readers may help support your work?
Posted by: Meelhama | 28 June 2007 at 09:27
I'm with Meelhama -- I read you weekly, and would be glad to help out, if needed, by doing things like digging for data, maintaining and updating datafiles, etc. Whatever would be helpful for you and educational for me.
Posted by: Robert Beck | 28 June 2007 at 09:52
Meelhama and Robert:
Thank you, and sorry for the delayed response. This thing started out as a hobby, but is now taking a third of my time. I'm starting to organize a book, mostly using material already available at this blog, that will eventually be available on demand thru online publishing, probably in iUniverse. What would really help would be for you to email me with your prioritization of the top three topics (in your opinion) that I've been covering -- i.e., what made the biggest impression on you, and why. That will help me filter the material and organize it more productively.
Thanks for your feedback, and thanks for the generous offer. Open to anyone who reads this, too.
Posted by: Steve | 29 June 2007 at 20:05