Is the US Dollar exchange rate going up or down for 2008.?
I think the exchange rate will continue to climb slightly and then stop. American Goods are becoming very cheap. European and Japanese exports are becoming more expensive. The US is not the only country to have a large current account deficit. A slowdown in the economy will reduce consumer spending on imports, combined with the devaluation the current account deficit is likely to fall. The problems in the US housing market are threatening to reduce consumer spending and push the US economy closer to recession.