We still love the dollar

The economic meltdown opened a window for a new global currency standard, but no good candidates exist.

By Kim Peterson Feb 24, 2010 3:17PM
Dollar vs. the euro  © Corbis Despite a lot of talk about what might become the world's top currency, the dollar has remained supreme.

After predictions of certain doom, the dollar is back and enjoying a major rally, Time reports. The U.S. dollar index is just off an eight-month high.

"Like the slasher in a cheesy horror flick, the dollar keeps coming back for another go, just when you least expect it," writes Michael Schuman of The Curious Capitalist.

The dollar's resilience doesn't seem to be so much because of the dollar itself, but because the world can't find anything good enough to replace it.

Even with all the economic turmoil in the U.S., the dollar still shines when compared to other world currencies. The euro, writes Schuman, "has been exposed as a fraud."

The financial crisis in Greece has highlighted the euro's weakness, just at a time when the eight-year-old euro should have been ready to mount a serious competition to the dollar.

Experts tell Time that Europe is mired in terrible debt and deficits that all the nations there share. Worse, there isn't really a system to deal with it.

Perhaps that might leave China, but the yuan isn't considered trustworthy enough, writes Schuman. Same with India's rupee.

It was almost a year ago that China, sensing opportunity as financial problems in the U.S. grew, proposed a new currency be created to replace the dollar as the global standard.

Nothing has come out of that proposal. World banks still hold more dollars and dollar securities than any other currency, The Wall Street Journal reports.

5Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

126
126 rated 1
286
286 rated 2
474
474 rated 3
680
680 rated 4
626
626 rated 5
609
609 rated 6
620
620 rated 7
462
462 rated 8
304
304 rated 9
132
132 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
BIDUBAIDU Inc10
BXTHE BLACKSTONE GROUP L.P10
CELGCELGENE CORP10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.