The dollar has fell 30% lower against the euro. Right now, people have to pay $1.24 for one euro, which used to only 80 cents a euro. The dollar fell against the major currencies and as it falls, other currencies get better. The bad things about a fallen dollar is that the importing will cost more, and business that need foreign goods, will receive less and business won’t produce as more. Traveling would be annoying due to the low cost of the dollar. Some countries now, don’t even accept U.S. dollars anymore. The euro is being used a lot and many foreign workers would rather get paid by euros instead of dollars.
The two currencies that are mostly recognized are the dollar and the euro. If both currencies were to go against each other, the euro would win since it is more valued and people would prefer euro than the dollar. As the dollar falls, investors hold back from investing into U.S. assets. The dollar will fall even lower and set a new low record against the euro. Will the dollar ever rise back up? Probably but that won’t be soon, it will take a while till it gets itself back up. And by then, the euro will be probably be the world’s currency and the dollar will still be lower than the euro, but won’t be as low.
Source: http://www.cato.org/pub_display.php?pub_id=2483
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