On January 15th 2005, Saturday Night Live featured a skit in which all the worlds currencies were personified.  The US Dollar was shown as a weak wimp when compared to the Euro, British Pound, Canadian dollar and other currencies.

The topic became water cooler conversation for a few days but quickly left the mind of many as the days have passed.  No one is really talking about the current state of the US Dollar except of course those in the currency trade business.

Kathy Lien writes,

the dollar hit fresh 26 year lows against the British pound, 24 year lows against the New Zealand dollar and 2.5 year lows against the Euro before recovering. The recovery however was shallow as the EUR/USD, GBP/USD and NZD/USD all ended up back in positive territory.

The dollar is struggling against currencies such as the New Zealand and Canadian Dollars?  New Zealand has a population of 4 million and the world seems to prefer it to a greater degree than the USD?  The same for Canada?

Something is greatly amiss here and no one is talking about it.  Don’t forget that China now holds trillions of US Dollars and can send the US into an immediate depression if it starts dumping US Dollars.  Iran is also now moving to Euros for it’s oil trade deals.  Venezuela has talked about moving to Euros for oil trade.

There isn’t much any one of us can do about the situation except of course strategically align our portfolios to avoid losses and hopefully make some gains.