This response is in two parts. US dollar has gone down against all major currencies because of US budget deficit and trade deficit. US had been covering the deficit through foreign capital investments. Presently, there is increasing strong confidence in Euro currency for CAPITAL INVESTMENTS (since George Bush is seen as a moron everywhere in the world, Capital investments in USA are a mute point in World Intelligent community). Rupee has not appreciated (on the other hand, Dollar has sunk) against Euro, pound, yen, australian and Canadian dollar. What does that mean:
1)That would prompt inflation and interest rates to go higher in USA. That means prices everywhere that are being quoted in US dollar would have to adjusted (ie. raised); very very soon.
2)Immediately, Prices can be negotiated for exports to everywhere except USA, without any problem. Exports to USA can be negotiated too, since USA importers know better how bad the currency crisis is (unless the goods are coming from China, wherein, industry such as Leather industry would definitely suffer since China's currency is pegged to US currency at 7.75 Yuan). Then again, China would have to pay for this STUNT since Chinese govt owns 400 Billions in US $ debt that means, Chinese Govt would be hurt very badly, very very soon. So don't worry, WHAT YOU SOW, THOU SHALL REAP, applies to China.
