Hi cat,
I interpret the Fed's policy of letting the dollar sink relative to other currencies as an aggressive act. It allows US companies a comparative advantage in the export market and makes it harder for other countries to import goods to the US. Good for a bunch of US businesses such as manufacturers of chopsticks.
Those FX rates look to me to be within the typical range for the US over the last decade or so and for sure are no indicator of hyperinflation. I'd rather be in the US where the Fed has a flexible mandate rather than Europe in which the Germans dictate that the Euro should always be strong and folks are fighting the wrong economic war. Good luck with avoiding a double dip using an inflated Euro, meinen Freunden.
| 